HF Career Advice - LS & LO world

Based on the most helpful WSO content, here are some detailed insights and advice for breaking back into the L/S or long-only (LO) world in NYC:

Strategies for Breaking Back into L/S or LO Firms:

1. Networking:

   • Recruiting Firms: Continue leveraging recruiting firms. They often have the inside track on openings and can provide valuable feedback on your resume and interview performance.
   • Direct Outreach: Reach out directly to funds with your resume and investment ideas. This proactive approach can sometimes bypass the crowded job boards and get you noticed.
   • Networking Events: Attend industry events and conferences. These are great places to meet potential employers and get a sense of the market sentiment.

2. Recruitment Tips for Long-Only Firms:

   • Interviews: Expect a mix of first-round interviews followed by a super day with multiple back-to-back 30-minute interviews. Be prepared for take-home case studies.
   • Stock Pitches: Have 2 long ideas and 1 short idea ready. Practice your pitches extensively as 50% of your interviews will likely focus on how good your pitches are.
   • Networking with Second Years: If you’re in an MBA program, grab coffee with second-year students who have interned at LO firms. They can provide insights into the interview process and firm-specific nuances.

3. Market Sentiment and Timing:

   • Election Impact: Some L/S SMs might be in a wait-and-see mode until after the election. This can affect hiring timelines, so be patient and persistent.
   • Current Market Trends: Keep an eye on market trends and how they might impact hiring in the L/S and LO spaces. Adjust your strategy accordingly.

4. Alternative Paths:

   • Flexibility: Stay focused but be open to other paths if you hit a wall. Many ex-hedge fund professionals have found success in other areas, such as private equity, equity research, or even back in investment banking.

Additional Tips:

• Investment Portfolio: Start or maintain an investment portfolio, even if it’s just paper trading. This keeps your skills sharp and provides fresh ideas to discuss in interviews.
• GMAT Preparation: If considering an MBA as a backup plan, a high GMAT score (780+) can be beneficial. It shows standardized test proficiency and keeps MBA options open.

Conclusion:

Breaking back into the L/S or LO world requires a combination of networking, direct outreach, and staying updated on market trends. Be prepared for rigorous interviews and have your stock pitches polished. Flexibility and persistence are key, especially in a market that might be cautious due to external factors like elections.

Good luck on your journey back into the hedge fund world!

Sources: PE Lateral Recruiting Advice/Stories/Help?, Lost job at L/S HF - looking for advice, Post-MBA Recruiting At Top Asset Managers / LOs, Q&A: ex-McKinsey EM and current L/S hedge fund analyst, Q&A: London L/S + event-driven analyst