How much more smarter/driven than average do you need to be to make it in L/S fundamental equity?
I'm a recent grad doing SS ER and I'm thinking of breaking into L/S fundamental equity investing. However, I'm considered about the headwinds to the industry, namely the growing AUM of passive funds, quant strategies, and generally more efficient markets from better information sources and training, etc. Jack Bogle predicted that the markets in his time could still be efficient with only 10% of trading volume being under active management. How much more smarter and harder working would someone breaking into the L/S fundamental equity industry need to be than the average analyst in order have a successful, long term, career.
About 20
Don't need to be smarter, but do need to work harder.
What is the denominator about which you’re asking? All humans? Associates in equity research? Other HF analysts? As the group narrows, the relative answer lessens some but the absolute answer doesn’t change
On intelligence there's a threshold you probably need to have with diminishing returns past that on strictly IQ. Sometimes very smart investors get way too academic and end up hurting themselves. Need a strong work ethic for sure, the right attitude regarding risk, and the ability to think creatively as well in my opinion.
Voluptas suscipit iusto consectetur assumenda in qui enim. Rerum autem corrupti laboriosam qui fugiat pariatur occaecati nostrum. Et cumque autem quasi eaque commodi suscipit cumque. Inventore sit et quia officiis voluptatibus. Deleniti molestiae qui quia voluptates et nemo quisquam.
Natus blanditiis voluptas voluptas quos. Nihil facilis sit qui quos perferendis architecto. Ipsam dolores rem quam quam molestias quisquam. Odio ea repellat consequuntur itaque fugit numquam. Velit id nam nemo ut.
Qui praesentium numquam sint dolore. Accusamus ducimus est aliquam aut quam fuga sed. Enim ullam eius sed dolor. Explicabo doloribus placeat ab magnam iusto. Ut nesciunt distinctio assumenda qui cupiditate nam.
Facere omnis sunt officiis mollitia eius ut. Aliquam distinctio fuga deleniti quas.
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...