ER v.s IB v.s AM for breaking into HF
Same as title I am looking to break into HF, will ER or IB look better on my resume? Or a large asset manager like Blackrock?
Thank you in advance
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Based on the most helpful WSO content, here's what you need to know:
Equity Research (ER): - Advantages: - Provides extensive market knowledge and experience in public markets. - Develops essential skills such as financial modeling, writing, presenting arguments, and selling ideas. - Offers significant responsibility early on, including client contact and access to management. - Strong exit opportunities to hedge funds (HF) and asset management (AM) due to experience in decision-making and analysis with limited information. - Many professionals in top hedge funds have backgrounds in ER.
Investment Banking (IB): - Advantages: - Builds "transaction" skills, which are valuable for certain types of hedge funds. - Provides a well-known path with more options for exit opportunities. - Experience in IB is also respected and can be leveraged to move into investment management roles.
Asset Management (AM): - Advantages: - Working at a large asset manager like BlackRock can provide a strong foundation in investment management. - Offers experience in managing large portfolios and understanding market movements. - AM experience is also valuable for hedge funds, especially for roles focused on long-term investment strategies.
Conclusion: - ER vs. IB: ER might have a slight edge for breaking into hedge funds due to the market knowledge and public market skills it provides. However, IB is also a strong contender, especially for transaction-focused hedge funds. - ER/IB vs. AM: Both ER and IB are well-regarded for hedge fund roles, but working at a large asset manager like BlackRock can also be beneficial, particularly for roles that value long-term investment experience.
Ultimately, the best path depends on your specific interests and the type of hedge fund you aim to join. Each path has its unique advantages and can lead to successful careers in hedge funds.
Hope this helps!
Sources: Exit-Ops: Equity Research vs. Investment Banking - (A Definitive Guide, Part 2), Why are you still trying to break into equity research?, Equity Research: Wall Street's Best Kept Secret, Where does ER go from here?, Breaking into long only Asset Management
Depends where you end up in Blackrock.
Generally I’d say IB>ER/Blackrock
What would be a good team to join at an asset manager if I want to later join a HF?
Depends on the strategy. Plain vanilla equity investing can get looks from ER. Anything else such as credit investing, activism and special situations is where an IB background would get more looks.
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