Career in ER and HF
Hi guys, i would like to pursue a career in ER and i need some advice. I’m currently studying at a university that’s locally considered a target (not in London, though I’m European). I believe I can secure a role in equity research locally, but breaking into the London market might be more challenging right away. I have a few questions:
1) Is it relatively easy to transition to better equity research desks after gaining experience locally?
2) Is breaking into a hedge fund similar to private equity, where you need perfect pedigree and transition as early as analyst? Or can equity researchers be considered for hedge fund roles later on?
3) Some argue that equity research and L/S are dying fields due to the rise of quant strategies. Do you think it still makes sense to pursue a career here, or is the future of equity research uncertain?
Thank you very much!
1) Don't know
2) No, I've seen people move in from lower-tier banks and at higher levels pretty frequently
3) No (for HF). ER is structurally challenged, but not because of quant.
Thanks!
Btw just to be sure, in 3) i asked “does it make sense to pursue a career in HF or is their future uncertain?”, so does the “no” mean “it doesnt make sense anymore” or “no their future is not bad”?
Quants look at different things to fundamental analysts, so no they're not replacing them. They're monetising different things. They have materially disrupted price discovery and made the game harder, but that's largely forced fundamental analysts to adopt quantitative strategies into their process in some regard (namely through risk/factor models)
So you can still pursue it. The bigger question is whether the career risk/vol makes sense for you personally and whether pursuing an L/S career makes sense if you don't break into one of the graduate training programs at the larger shops.
Different strokes...
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