HF "networking" as a junior?
Super interested in HF space and looking to make the switch FT. I have been attaching writeups to my cold emails to analysts/PMs and getting replies but calls have been mid as I'm used to IB networking calls. How do you suggest I approach HF networking calls? Is it similar to IB as in talk about background, experiences, then at the end bring up my ideas and ask for feedback or do I just skip the fluff on intros and go straight to pitching them?
When it comes to hedge fund (HF) networking calls, the approach differs significantly from investment banking (IB) calls. Based on the most helpful WSO content, here’s how you should tailor your strategy:
Skip the Fluff, Focus on Value
Hedge fund professionals are less interested in lengthy introductions or background stories. While a brief introduction is fine, the focus should quickly shift to demonstrating your value. This means showcasing your passion for investing and your ability to think critically about markets and ideas.
Lead with Your Ideas
Unlike IB calls, where you might spend more time discussing your background, HF calls should center around your stock pitches or investment ideas. Start by briefly introducing yourself, then transition into discussing a well-prepared pitch. For example, you could say:
"I’ve been following [specific sector/stock] and have developed a thesis I’d love to get your thoughts on."
This approach shows initiative and aligns with the HF culture of idea generation.
Be Ready to Defend Your Pitch
Hedge fund professionals will likely challenge your ideas to test your thought process. Be prepared to defend your thesis with logical arguments, data, and evidence. Know the investing strategy of the fund you’re speaking with and tailor your pitch accordingly (e.g., long/short, event-driven, etc.).
Ask Smart Questions
Instead of generic questions about the firm, ask insightful questions related to their investment strategy or the market. For example:
"How do you typically evaluate risk in [specific type of investment]?"
This demonstrates your genuine interest and understanding of the HF space.
Keep It Conversational
While you want to showcase your skills, avoid turning the call into a monologue. Engage the professional by asking for their feedback on your pitch or their perspective on the market. This creates a two-way dialogue and helps build rapport.
Follow Up Thoughtfully
After the call, send a thank-you email and include any follow-up materials if requested. If they provided feedback on your pitch, mention how you’ve incorporated their suggestions or refined your idea.
Remember, HF networking is less structured than IB, and the emphasis is on proving your ability to add value through ideas. By focusing on your pitches and engaging in meaningful discussions, you’ll leave a stronger impression.
Sources: Hedge Fund Careers: Getting a Hedge Fund Job Out of Undergrad and Beyond, Networking into a Hedge Fund? It's Unstructured., Networking 101 -- Hedge Fund Edition, Networking into a Hedge Fund? It's Unstructured., Investment Banking to a Hedge fund... Can You Make the Jump?
Bump
Trust me, don’t join an SM out of undergrad. I know many people who went down this path, even to prestigious SMs, and the success rate is extremely low. There’s no formal training, very little mentorship, expectation to perform 6 months to a year into the job, no brand name bank or pe firm as a safety net, etc. The one person I know that ended up doing okay for himself after SM out of undergrad was stressed out of his mind and hated his life during his first two years, and the majority of others I know are out of the industry or are at failing / no name funds. Just go and do your time in IB and/or PE and make the jump. Also, I should mention that even the top students at Wharton or Harvard interested in L/S don’t know a thing about public markets investing - it just comes with time and experience. I’ve taken calls from college kids (with brand name sophomore summer hfs on resume) and don’t think I’ve been impressed once. This is not to say that these college kids aren’t talented, but more so that they’re nowhere near ready to stake their career at an SM.
what’s the difference from many people just joining pods out the gate FT at C/M,etc which is happening now?
I’m not a fan of the pod programs besides Citadel. Even then, they’re better options than going to an SM out of undergrad. Quality and amount of training, program structure, feedback, program history / brand, etc are all far better at the established places than going to a random SM. You don’t really consider these things as a college student, but being thrown into a completely unstructured environment with little interaction with your PM or sector head directly out of school is not conducive to your development.
I guess I'm really interested in pub equities, but not happy with my LO fund and not sure ill be able to exit later down the line so trying now. I've been more so curious on how to even approach these calls but are you saying don't even?
I know you talk mostly about L/S so might not know a lot about credit, but would you say your advice holds true for credit HFs as well? I know Silver Point takes a few from W—and I guess I can't speak to the quality of their program—but would you say that is an exception when it comes to quality of programs for undergrads in credit HF or are they better quality, especially on the more private side?
Animi voluptas sunt dicta quam sit nisi. Et sed itaque et laborum exercitationem magni. Qui enim aut porro aut natus maxime saepe. Quo quam ullam quidem doloremque. Sapiente beatae aperiam minima. Delectus dolorem culpa illum libero necessitatibus.
Quo at iure ut dolor officia reprehenderit. Cumque facilis quisquam magni in unde tempora rerum consequatur. Eos quos doloribus consequatur repellat dignissimos non. Dolorem eius doloribus sapiente deserunt aut.
Rerum cupiditate nisi minus nemo. Accusamus et provident maxime beatae maxime quia. Minus laboriosam quia sit id reiciendis excepturi pariatur impedit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...