HF Age Limit
I've noticed HF tend to hire analyst direct from sell-side after 2-4 years' experience. For someone who made the pivot from an unrelated industry to sell-side research in late-20s/early-30s and with 3+ years exp, would this be considered too old for a position at a HF?
Also, considering the fact some analyst burn out and exit the industry even after 1 year, I'm sure biz dev and recruiters take this into account. Has anyone seen this? Thoughts? What are some of your experiences?
Based on the most helpful WSO content, age is not a significant factor in the HF business. What matters more is your ability to perform and deliver results. It's not uncommon for analysts to transition from different industries or roles into a HF position.
As for burnout, it's less common in HF compared to investment banking. However, it's not uncommon for some analysts to realize that they may not be suited for the role, for reasons such as not being comfortable taking risks, unable to think independently from consensus, or not being able to handle the pace of public markets. In my experience, about 2 out of 5 get found out in the first 3 years. But once you know you're in the right long-term career, it's far more rare to burn out.
As an analyst, you're constantly building your knowledge and refining your processes, so the job should become easier over time. So, don't worry too much about your age or the potential for burnout. Focus on building your skills and proving your worth.
Sources: Q&A: London L/S + event-driven analyst, 8 figures for late 20s/early 30s HF employees, HF Distribution of outcomes - by mid-30s, 1st Year HF Analyst taking questions
As a general rule, the window of opportunity narrows the older you get - but it never completely closes.
There was an MD at DB in credit research that was on the sell-side 20 years plus that just joined Apollo as a senior analyst. There that were two separate senior analysts at Goldman in GIR who also made that same move to the buy-side after 20 plus year sell-side careers. It can be done, but the move becomes harder because funds are looking for appropriate experience relative to cost to hire. That 20 year person on the sell-side maybe more expensive than the junior person, but still lack risk-taking experience unless that individual was sitting in a trading seat.
That said, the more time that passes the harder that move becomes. The vast majority of buy-side investors make their move from IB/sell-side research in their mid-to-late 20's.
To your specific question, yes you can totally join a hedge fund in your 30s. Did it myself and know many who have. That said, you are likely behind peers your age (both in seniority and comp) that had a more direct path. Nothing wrong with that - we all have our own paths. What matters is you eventually got there and cheers to you for doing it with the less traditional path. Keep at it and don't let age keep you from trying.
How were you able to switch?
It's never too late. Look at all the bios on millennium or citadel's websites...many of those people hopped over from goldman / credit suisse / morgan stanley / etc in their 40s and 50s. same in PE
Thanks a lot. Really appreciate the feedback and the examples.
Don't forget that generally, the very experienced sellsiders decide themselves not to go in the buyside because it generally means a strong salary cut for them. As you gets older, you become less flexible on your lifestyle.
Madhu Kumar was a GS GIR VP covering biotech who just joined a hedge fund this year.
For background he graduated undergrad in 2004 and from his PhD in 2009 meaning he’s around 39 / 40.
Is he famous ?
No he’s just in my sector (not even ranked)… always thought I needed to scramble within 2-3 years to land a Buyside seat. His move just showed me that you don’t necessarily have to.
Also the fund is sub $500 million AUM so curious if his economics there vs making probably 700-800k at gs if not more.
Got it, I agree, although this forum may be useful it puts completely wrong concepts into your head, in fact, everyone has their own path
yea don't worry about other people. getting a hedge fund job is definitely doable, it's about making small steps in that direction overtime and taking enough shots on goal until eventually someone gives you a chance. took me 5 years to land a sellside job from a non target school. Spent 4 years on the sell-side. Landed at a small hedge fund at 30. Now at one of the best well-known distressed hedge funds in a very good seat. Took me 10+ years to get to where I am today, but I got there and only because i didn't stop trying and was willing to get rejected 100s of times over earlier in my career. you do have to be competent/ reasonable, but there is a path. One thing you'll find is that when you do get to the place you want, you'll have a lot more grit than a lot of your peers who had the more linear path.
I'm in the same boat. Switched from a different industry at a level where rarely anyone makes that switch.
The hedge fund won't care much that you're older.
The question is if YOU feel comfortable:
Given the flat hierarchy, you might have to also give up your fancy title. Outside the HF world, people associate "Analyst" with a very junior person. Which you technically are, meritocracy aside. My former coworkers sometimes seem a bit surprised that I'm an analyst again, lol. Women you date might also struggle with the concept.
In my opinion, only worth it if you know that your PM is killing it and expecting fat bonuses.
at what age did you make the switch?
33
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