IB or ER

Based on the most helpful WSO content, if your ultimate goal is to land a Long/Short Hedge Fund (L/S HF) seat, both Equity Research (ER) and Investment Banking (IB) can serve as viable paths. However, there are key considerations to weigh:

Equity Research (ER):

• Direct Relevance to Hedge Funds: ER is often seen as a more natural feeder into hedge funds, especially for roles focused on stock-picking and fundamental analysis. Your experience in biotech ER will give you deep sector expertise, which is highly valued by hedge funds.
• Specialization: Staying in ER allows you to build a strong track record in biotech, which could make you an attractive candidate for biotech-focused hedge funds.
• Career Ladder Challenges: ER has a less structured career ladder compared to IB. Promotions can be slower, and moving from associate to analyst can take anywhere from 2 to 8 years, depending on the firm and sector dynamics.

Investment Banking (IB):

• Broader Skillset: IB provides a more comprehensive financial skillset, including transaction experience, which can be appealing to hedge funds that value deal exposure.
• Faster Career Progression: IB offers a more rigid and predictable promotional structure, with clear timelines for moving from analyst to associate and beyond.
• Exit Opportunities: While IB is a strong feeder into private equity, it can also lead to hedge fund roles, though typically for event-driven or activist strategies rather than fundamental L/S funds.

Recommendation:

If your passion lies in fundamental analysis and you enjoy diving deep into biotech, continuing in ER is likely the better path for a L/S HF role. Your biotech expertise will be a significant asset when pitching yourself to hedge funds. However, if you want to broaden your skillset or keep options open for other finance roles, transitioning to IB for full-time could be worth considering.

Ultimately, your decision should align with your long-term interests and the type of hedge fund strategy you aim to pursue.

Sources: Career Ladder: Equity Research vs. Investment Banking - (A Definitive Guide, Part 3), Exit-Ops: Equity Research vs. Investment Banking - (A Definitive Guide, Part 2), The Efficient Career Hypothesis: Almost All Jobs Are Priced In, https://www.wallstreetoasis.com/forum/equity-research/career-ladder-equity-research-vs-investment-banking-a-definitive-guide-part-3?customgpt=1, Work/Life Balance: Equity Research vs. Investment Banking - (A Definitive Guide, Part 1)