CFA® needed for HF?
I am an undergrad at a lower Ivy. The pool of competition over the years has gotten fiercer and the opportunities for HF have gotten smaller. With the pool getting that much bigger, how much would a CFA® stand out for HF?
May 24, 2021May 24, 2021
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Comments (30)
Not much.
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I've heard a CFA is the gold standard nowadays. What are some other things to focus on if not a CFA?
Gold standard...
Learn how to analyze businesses?
Learn how to invest?
Learn how to read a 10K (there is a great Wolfe Research piece on that, Google it)?
Learn how to do financial modeling?
Try those instead.
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At most HFs it won't matter/be helpful at all.
you are better off getting a masters in applied maths than a CFA.
I am pretty sure its one of the most useless things if you're already working in finance
What about as an undergrad not in finance yet but wanting to secure that full-time HF analyst position?
you're better off focusing on recruiting. Network hard with people and use that CFA study time brushing up on interview guides
CFA is more for asset mgt than the hedge fund world.
While passing level 1 has a positive signaling effect, it's a very time intensive charter to obtain. Your time would best be spent acing classes, prepping for interviews and networking.
Best of luck.
Roger! Thank you again!
No one gives a rat fuck about the CFA at hedge funds.
CFA has tasty fried chicken sandwiches and waffle fries. Try their lemonade!
Shouldn't u be at your local 7/11 right now
Because I'm Indian?
Of all the HF portfolio managers I know, very few have the CFA designation.
Do the PMs you know not need one, or since there are few with the charter it would stand out?
literally no one gives a flying fuck about those 3 letters. As long as you're getting results no LP will doubt you (unless illegal shit is going on)
The only thing that matters is performance and results in this business, no letters are going to save or give you a job here
I would argue that even for asset management CFA is used more for marketing to investors and not something that changes the outcome of an application for a junior role in almost any case. If an employer thinks CFA is a good credential to have in their company, they will sponsor you for it, so having a CFA level 1 after graduation won't add much. And I say that as a CFA Charterholder.
Cases where it helps are:
1) You are finishing college and your degree is not in finance/econ or internships are not super relevant (but still strong) and want to show interest in asset management
2) You want to transition from another industry/role and want to show interest in asset management - I did that as I moved from several years of consulting and M&A to asset management.
In your case, things you need to focus on more, apart form networking are (these are also things I look for when I am interviewing analysts or reviewing CVs):
1) Interesting stock pitches - not just regurgitating any standard sell-side research, with some good valuation skills and business understanding.
2) Personal portfolio - if you can afford one, or even a virtual one if you can't. Be able to talk about investment decision and run through your rationale.
3) At CV stage - good university and good GPA. Some funds or portfolio managers might have some cutoff GPAs (even if not a formalized one).
4) Also at CV stage - good extracurriculars - some professional ones, like student run funds, finance clubs (not just membership, but actual leadership). And try to also have some other interesting activities or hobbies, not just finance related things.
5) Most important at CV stage - internships. The ones I like most to see on CVs: other asset management roles, equity research or IB. I also like to see other competitive roles, like MBB consulting or FAANG type internships, but that could be just me.
So, to sum up, you can work on all 5 things above + networking and that can fill up more than any free time you have at this stage. The CFA, even for a junior person that is studying a relevant subject at a target school, is more a box ticking exercise.
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