FoHF as a networking medium
I'm an undergrad with the opportunity to do part-time work at a Fund of Hedge Funds in London. Now I understand FoF aren't that great to acquire technical skills, but the opportunity to make contacts on the buy-side sounds interesting. Assuming I have no previous work experience in finance, is there any chance I could somehow 1) get an internship at a small HF 2) get a FT role?
The plan would be to do FoF -> network -> internship HF -> FT HF (same fund or not) and target small funds without a structured recruitment process.
I'm mostly interested in L/S equity.
??
potentially...depends on what you have to offer...how good you are at socializing...lots of factors...but as you are young and probably don't really have anything to offer yet...i doubt anything would come of this...but it sounds like a good rolodex builder
Agreed. If OP doesn't have fundamental analysis skills, difficult to get leads to junior research roles at L/S funds.
OP - absolutely. If you don't have any other internships lined up, then totally take it. Be a networking boss. And not just with hedge funds but within your organization. Show interest, hunger to learn, be amiable, offer to get lunch, help out etc. If you build good relationships on the fund side or in your organization, then then senior people at the FoHF will most certainly have "some buddies" in the business. At the very very least in IR or at the analyst/PM level if not Fund head. All it takes is for there to be an opening and a kind word from a trusted mouth. Especially as an intern you may be able to play the card of "do you think I could get an internship with a fund next year to "learn" what a fund is all about? It will make me much better at this job" or something like that. To funds you will represent low-cost, low-risk smiling grunt who came recommended from a buddy. The latter bit is critical.
On networking, reach out to everyone. "Hi I am an intern at x FoHF." Do it with IR/COOs, Prime Brokers, Other investors, pretty much anyone. Especially if you are young and nice and since you represent actual money, most people will not only take a meeting but also be very pleasant (the latter is literally their job).
I have sat in a number of different seats in this business. And having managed actual PnL at a HF has made me a much better questioner/diligencer/allocator. Why? Because I have seen how the sausage is made on the ground level. I'm not saying I am/was any good at it but I get it and so can ask tougher questions to better ascertain who is/may be full of BS (most in the industry) and who is actually good (very few). Who is actually taking a lot of blind risk and who isn't. As an allocator, so often its not about choosing the best funds (because that metric depends on your goal and by the quarter) but how to avoid landmines. And there are TONS of landmines. The other thing, most HFs don't make that much money for investors, especially on a risk adjusted basis in the longer term. Most trades are crowded (groupthink), as well. It is just so so competitive. Everywhere.
Any questions, PM.
Good Luck
I suggest taking the role, with a caveat.
Networking alone won't get you to a job at a HF. You also have to demonstrate that you can do the job. I suggest starting the CFA program. This will show the buy side that you're not only interested in the roles and have great networking skills to make contacts, but you're acquiring the skills to do the work required at a fund.
Good luck!
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