is it possible to make it anywhere in the HF industry in Australia? 16yo
So basically i’m an aussie teen and am interested in the wide world of high finance.
finance genuinely interests me and I enjoy reading up and researching stocks and following the markets.
hedge funds are of a particular interest for me but upon research, they don’t seem to be flourishing as much in Australia as they do overseas.
i really want to know what the fuck is up and if it’s even possible to make it here or even overseas.
I’m planning on a BComm in Finance or Economics at UniMelb (go8). I’ve got a few questions for those with their $0.02 to give. cheers
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What’s the finance industry look like here? (both sell side and buy side would be great)
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Traditional career trajectory?
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Any possibilities of transferring overseas for finance?
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Any other thoughts or tips?
Hey mate. In my view, the best way to set yourself up in the Australian finance industry is via investment banking. There are heaps of opportunities for internships and grad roles across bulge bracket banks and boutique advisory shops. Once you land a role in IB, you secure financial freedom pretty quickly ($250k+ total gross income in your first 18 months) and a myriad of doors become open all of a sudden - including hedge funds. Trade off is a horrible work life balance (85-100 hours per week) and the work isn’t always great.
Any international company will send you to their offshore offices after you spend at least 2 years there. So I think your best bet is landing an IB role with a global bank. Once you make the move to a London or a NYC, you can explore the large hedge fund industries there.
FYI - I may be biased as I am currently in IB and intending to follow the exact plan I outlined above.
Tips: get solid grades (85%+) at uni and get really involved in extracurricular things like student societies, investing clubs, and competitions. Try to secure some finance experience (think big 4 corporate finance / big 4 banks) early on so you are successful when applying for IB internships. Network network network.
Another path is to study in the states or UK at an IVY or Oxford/Cambridge post grad for a year then tap those markets.
Alternatively get a seat at an IB in Sing or HK (assuming it hasnt totally shat the bed by then) and then lateral.
But yeah the other guys advice RE doing IB locally is solid, dont do S&T its a waste of time in 2021+...
Yeah, there's plenty of room to bloom. You're young, study as much as you can. Delve into the world around you (I'm in TX and we already have enough killer things, so you can keep yours there). Malaysia/Singapore, Papau NG, all the resources of WA (I admit, Perth is one of my bucket list places to live out my life at). Your greatest asset as I can see it right now is the willingness to travel abroad to pursue your goal. So take advantage of that.
Buyside here is mostly MM PE. There are HF shops but AUM is small plus strategies are not very exciting.
Try your best to do your undergrad at a top school in US/UK and do finance over there.
If you want to stay in Oz, then max out ATAR, get into G8, active with clubs, top your GPA, and networking since day 1. The goal should be a BB IB offer. Maybe picking up one additional language to make you stand out if you have a secondment to another country. Asian languages if you want to transfer out to HK/SG, saw a lot of Aussie bankers in HK though. Or European languages if you want to transfer to UK.
Anyone have comp data points on L/S equity? Seems like decent # of HFs running market neutral and active extension + few crossover funds (Regal, TDM)
In my limited experience, it's very, very heterogeneous. There are certainly more than a few PMs wandering around making 7 figures in a good year, although I wouldn't say they're in the majority. Making serious money in Aus largely seems to be tied to equity held in the management company, which seems to be a function of tenure and/or being in a position to spin out and launch your own funds. A base of $100-$200 seems to be standard for most analysts, plus some form of performance bonus which can be considerable for a Fund that charges performance fees.
Thanks mate! Appreciate the response given the limited transparency in HF Aus.
Which funds are considered ‘good’? There’s seems to be multiple domestic L/S equity funds with Regal looking like a clear #1 but on the global L/S magellan (even tho they don’t short) and Platinum seems to have track record.
Given Aus IBD has recently increased bases to ~230 for new associates with all in coming in around high 200s which escalate to 350-400 in 3rd yr asso, do you think funds management comp is comparable do banking or even PE (heard only MFPE and large domestic pay par/prem to IBD)?
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