If you know HF is your end goal, is IB + PE actually worth it?
I’ve seen a lot of discussions about the traditional IB → PE → HF path, but what if you already know you want to end up in public-markets investing and have the opportunity to intern through an academy at a top MMHF (Point72, D.E. Shaw, BAM, etc.)?
Would you still choose IB → PE, or go directly to the HF?
One argument for IB → PE is that you develop deeper industry knowledge, but how valuable is that for HF? In PE, you're learning to underwrite businesses and conduct diligence, whereas an HF analyst is focused on public companies, catalysts, earnings, valuation, market expectations, etc. If the end goal is HF, is PE actually giving you a more valuable form of industry expertise than you would get by going directly into public markets?
At the same time, the direct HF route obviously comes with more risk. At an MMHF, your career can be much more performance-driven, so if you underperform, your PM gets cut, or your pod shuts down, it potentially leavs you without a seat very early in your career. IB to PE provides much more career stability and optionality.
So for someone who is very confident HF is the end goal and has a legitimate opportunity at a top MMHF, would you take the direct route despite the risk, or still do IB to PE first?
How much should you value the additional industry experience and career optionality of IB to PE versus getting four years of directly relevant public-markets experience?
This question makes me lose hope in the AI era of graduates
What do you mean?
Some aren't like OP. Perhaps a minority but they do exist
If you want HF then join HF. ✌️
I would plug banking and PE for the network you build. Youll make a lot of friends.
Ooh banking and PE friends
Yes if you suck at public markets investing. And you will have no idea if you suck until you actually do it for a few years. So the optionality of a guy with 4yrs of exp at IB/PE is he washes out of HF in 2-3yrs vs. the guy who purely did HF investing at 2-3 shops and blowing up along the way -- not comparable
Public markets is inherently an arrogant job, since all of us assume we can beat it over some horizon. But post costs, only a small minority end up doing that. You don't know if you're one of those. Hence the value of the optionality
Just my two cents
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