IB >>> HF FT Recruiting Questions

Hey monkeys, 

In college right now at a Semi-Target. Didn't know much about finance coming into college, but got exposed to what banking was in freshman year, then during my sophomore year, networked and prepped my ass off during recruiting and was lucky enough to land a spot at a top BB/EB in one of their top groups for this upcoming summer; however, IB has never been the end goal, and after experiences in the industry, not as interested in UMM/MF PE either. 

For me, I am really interested in working at a hedge fund, (Not super set on any kind of strategies, have looked at L/S, LO, Activist, or any non quant/PHD level math focused kind lol, not entirely sure what all that includes) but it's been really hard to find info on recruiting, timelines, etc., online or at my college (I know it's a lot less structured than IB/PE recruiting). I have 3 main questions for all of you out there who know a lot more than me. 

  1. Is there any active recruiting for FT in the HF space, or would the best move be go FT in IB, then focus on transitioning from there when opportunities arise? Or are there even possibilities to enter without years in IB + PE?
  2. Would the best approach to finding out more information be cold emailing/LinkedIn messaging industry professionals, starting now, to build relationships and gain more advice and info?
  3. What can I do now to build skills that would be useful there? Any books you all recommend, modeling exercises, stock pitches, etc.

Thank you all for your help!!

7 Comments
 

Based on the most helpful WSO content, here’s what you need to know:

  1. Active Recruiting for FT in the HF Space:

    • Hedge fund recruiting is significantly less structured compared to IB or PE. Unlike PE firms, hedge funds hire on an as-needed basis, often driven by factors like AUM growth or team turnover.
    • While there are some opportunities for direct FT recruiting into hedge funds, they are rare and typically require a strong network or exceptional skills. The more common path is to start in IB (or sometimes equity research) and transition to a hedge fund when opportunities arise.
    • If you’re set on hedge funds, it’s worth exploring direct opportunities, but be prepared to pivot to IB FT and transition later.
  2. Networking and Building Relationships:

    • Networking is critical in the hedge fund space. Cold emailing and LinkedIn messaging are excellent strategies to connect with industry professionals. Focus on building genuine relationships rather than just asking for opportunities.
    • Referrals are highly valuable in hedge fund recruiting. A strong network can help you get your resume in front of the right people and increase your chances of landing interviews.
  3. Building Relevant Skills:

    • Start working on stock pitches. Hedge funds value candidates who can demonstrate strong investment ideas and articulate their thesis clearly. Practice creating and presenting pitches to refine your skills.
    • Develop your modeling skills. Financial modeling is a core skill for many hedge fund roles. Consider using resources like the WSO Financial Modeling Series to enhance your expertise.
    • Read books and resources to deepen your understanding of investing. Some popular recommendations include:
      • "The Most Important Thing" by Howard Marks
      • "You Can Be a Stock Market Genius" by Joel Greenblatt
      • "Common Stocks and Uncommon Profits" by Philip Fisher
    • If possible, start building a personal investment portfolio (even if it’s paper trading) to gain hands-on experience.

By focusing on these areas, you’ll position yourself well for a future transition into the hedge fund space. Good luck!

Sources: The Hedge Fund Experience - Good, Bad, Ugly, Advice on HF Recruiting, Transitioning from IB/ER to HF Series - Part 2: Where to Interview and Behaviorals, https://www.wallstreetoasis.com/forum/hedge-fund/the-hedge-fund-experience-good-bad-ugly?customgpt=1, Networking into a Hedge Fund? It's Unstructured.

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Do stock pitches and be good at modelling. Don’t walk into a pitch spending 10 minutes talking about the business and the industry and the management team. Keep it succinct, to the point, what’s changing, where’s the street, what’s the debate etc 

 

Ask your questions here. There’s no secret sauce im going to give you in PMs and I doubt I’ll say anything that hasn’t been stated on this forum before 

 

Anonymous Monkey:

Ask your questions here. There’s no secret sauce im going to give you in PMs and I doubt I’ll say anything that hasn’t been stated on this forum before 

How deep and extensive does the modeling have to be (ie unique unit economics / insights delved deep into etc…). Feel like I’m solid on finding the catalysts and due diligence research to verbally describe the mis pricing in the stock and show a decent amount of it in the model ie the levers of margin expansion and growth not being factored in despite fundamentals of the business being robust, but the ad hoc excel analysis is where I get really tripped up. Haven’t done a formal stock pitch competitions (aside from investment clubs at my school before graduatuon) but can speak to why I think there are value drivers not being factored in etc… worried about falling face flat when interviews for Hfs come around. Haven’t gotten a taste of it yet. Is there any in general that the Farallons, mavericks ands eminences of the world push you hard on?

 
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