HF after AA vs HF after 3rd year vs HF after 2nd year

How does hedge fund recruiting work for those that want to jump over to a hedge fund after an Analyst to Associate promotion? Would you be at a significant disadvantage compared to a 3rd year analyst? Do you become less marketable when you gain an associate title?

I ask because a friend who is about to go through PE recruiting mentioned that there are so many analysts applying to PE that PE firms do not need to and do not want to hire associates.

Would funds assume that you aren't as talented if you didn't jump over to the buy-side after your 1st or 2nd year as an analyst?

This is all assuming you are at a decent BB/Boutique M&A/coverage group and that you are getting above-average reviews.

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