Importance of MBA for HF recruiting
The title speaks for itself. Interested in hearing from current professionals about how an MBA (M7) is looked at from a candidate attempting to recruit for HF (SM/MM, L/S). Necessary? Helpful? Completely person dependent? Thanks!
Entirely irrelevant for MM L/S. nobody cares or values it
An MBA from an M7 school can significantly enhance your prospects in hedge fund (HF) recruiting, particularly for roles in small to mid-sized (SM/MM) and long/short (L/S) funds. Here’s how an M7 MBA can be beneficial:
Access to Recruitment Opportunities: Top business schools often have well-defined recruitment processes and strong industry connections. This provides a structured platform where prestigious HFs actively seek talent.
Skill Enhancement: An MBA program, especially from an M7 school, equips you with advanced financial and analytical skills that are highly valued in the hedge fund industry.
Networking: The alumni network and peer connections you develop during your MBA can be invaluable. These connections can provide insider insights and potentially open doors that might otherwise remain closed.
Credibility and Brand Value: An MBA from a top-tier school adds significant credibility to your resume. Hedge funds, which often scrutinize the pedigree of their potential hires, may view candidates with an M7 MBA as more competitive.
Downside Protection: As noted in the context, having a top-tier MBA provides a safety net in the highly volatile finance industry. If recruitment into HFs doesn’t pan out immediately, the MBA degree offers a strong fallback with other high finance roles.
While an MBA from an M7 school is not strictly necessary for breaking into hedge funds, it is certainly helpful and can sometimes be a differentiator in a highly competitive field. The value can vary depending on individual circumstances, such as previous work experience and specific career goals.
Sources: https://www.wallstreetoasis.com/forum/investment-banking/m7-ib-associate-full-time-recruiting?customgpt=1, Admitted to an M7 next fall, how do I best prepare myself for MBB recruiting now?, Current Value of MBA for Highly Successful Young Professionals, How do banks differentiate among MBA students during IBD recruitment at M7/T15 schools?, Brief Introduction to Banking Recruiting at the MBA Level
Couple of exceptions to the general view that it's not particularly helpful:
1. There are some pedigree snob single managers that like to hire from the top few MBA programs.
2. For people outside of finance, it can be helpful in facilitating a career transition. It's how I made the move from industry to the buy side.
I'm in the midst of hiring for a junior L/S role and honestly I am indifferent to MBA degree but would find it accretive to someone's candidacy if they didn't have much finance experience. I'm probably going to end up hiring someone direct from a more relevant buy/sell side research seat, but that's how I think about it.
What industry out of curiosity? I'm surprised to hear that move was possible via MBA unless it's healthcare where I can see strong educational / pre-MBA industry experience being valued
For OP - don’t think the MBA is meaningful at all for vast majority of candidates (usually those going to top SM HFs post-MBA had credentials to recruit directly and as someone else mentioned MM funds don’t care). If anything, I think the 2 years spent in the MBA can be a negative in a HF career given it’s taking away from a short window of time to gain experience and pursue a track record of your own before you get trapped into senior analyst no-man’s land
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