How do I assess if I'm really cut out for this industry?
I am a current undergrad about to graduate to work in a buy-side equity research role at a LO AM, with the goal of eventually switching to L/S fundamental equity. I performed well at my summer internship at the same LO firm and feel like my investment knowledge is above the baseline for most undergraduates going into FO finance, but I am worried about the possibility that I will not be able to beat whatever benchmark my job will be assessing against, especially with all the fee-pressure, AI automation, index fund growth, etc that will continue into the future. My fear is that I will be 28, married with kids, and then wash out of the industry and need to make a career switch. Weekend work doesn't care me but I don't know how to assess if I really am differentiated from the 90% of active managers who fail to beat their indices.
How do I really assess if I have the chops to generate alpha? My PA has performed well and I have done well in stock pitch competitions (against my peers) but some part of me is worried that the real job will be much different than what I've gone through as a student/intern. Any thoughts/advice on this would be helpful. Thanks!
If you care about things like “weekends” and “work life balance” then you aren’t about this life.
You have to have a lot of passion and grit on top of the skills.
Sorry if it was unclear but my question was how I could assess if I can really generate alpha over a long time horizon (other than underperforming and getting cut)
Start having views on everything and act on them, track how well you do over time. That's it.
Don't worry, my guy. By the time when that decision does come (meaning when you do decide you're not 'cut out' or however you want to define it), you know for sure that you'd already have a couple years of good experience at a good shop in a good seat, and you'll thus have the wisdom to make the right choices for yourself. For now, just know that investment management is an incredibly competitive business so just focus on what you can control. All the best and treasure this moment. Go thy way, eat thy bread with joy, and drink thy wine with a merry heart; for God now accepteth thy works.
agree with this, just go for it. you are clearly smart if you are at this point, you will be fine no matter what. don't overestimate the industry, work hard, and make sure you learn from your mistakes and your alpha generation will be refined over time. time in market > timing the market for this career too.
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Bumping, definitely a much more brutal place than one would think it is like.
Especially as these days, there more people are joining right as a freshgrad, instead of the traditional 2 + 2 or from the sell-side etc.
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