LO and HF internships

Could anyone share some light on how difficult it is to recruit for LO and HF internships/full-time jobs for a MBA level candidate? I am specifically talking about equities, and targeting the top Tier 1 LOs and SM HFs.

What's the reputation for the top LOs and SM HFs on a firm by firm basis? How many interns do they usually hire per year? Which one is the hardest to get into? Thanks

19 Comments
 

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

  1. Recruiting Difficulty for LO and HF Internships/Full-Time Roles (MBA Level):

    • Recruiting for top-tier Long-Only (LO) Asset Managers and Single Manager Hedge Funds (SM HFs) is highly competitive. The seats are limited, and the competition is intense.
    • Networking is critical. For LOs, it's often about building relationships with second-year MBAs or alumni who can guide you through the process and help you understand firm-specific nuances.
    • Hedge funds, especially SM HFs, focus on your ability to add value. They want to see how you think, your modeling skills, and your passion for investing. Developing stock pitches and demonstrating a deep understanding of equities is essential.
  2. Reputation and Firm-Specific Insights:

    • Top LOs: Firms like Capital Group are highly regarded. They typically hire a small number of interns (e.g., Capital Group takes around three interns, often from HBS and GSB). They value candidates with PE or public equities backgrounds but are open to others who demonstrate exceptional drive and fit.
    • Top SM HFs: These funds are known for their rigorous selection process. They often prioritize candidates with prior experience in investment banking, private equity, or equity research. The reputation of these funds varies, but they are generally seen as highly selective and demanding.
  3. Interview Process:

    • For LOs, expect a mix of first-round interviews and a super day with multiple back-to-back interviews. You may also encounter take-home case studies. Be prepared to pitch two long ideas and one short idea, and have additional stocks ready for high-level discussions.
    • For SM HFs, the focus is on your thought process, stock pitches, and ability to model effectively. Written pitches and models can set you apart during networking and interviews.
  4. Hardest to Get Into:

    • Both LOs and SM HFs are challenging, but SM HFs are often considered harder due to their smaller size, lack of structured recruiting processes, and preference for experienced candidates. LOs, while competitive, may have slightly more structured pathways for MBA candidates.
  5. Tips for Success:

    • Start early and seek feedback on your stock pitches and models.
    • Network extensively, as many opportunities are not publicly advertised.
    • Demonstrate passion for investing and a long-term focus in your pitches, especially for LOs.

For more detailed insights, you can explore the WSO thread on post-MBA recruiting at top LOs here: https://www.wallstreetoasis.com/forum/school/post-mba-recruiting-at-top…</a">Post-MBA Recruiting At Top Asset Managers / LOs.

Sources: Post-MBA Recruiting At Top Asset Managers / LOs, MBA Tier List for Investment Banking, List of HFs that recruit from undergrad (FT and interns), Post-MBA Recruiting At Top Asset Managers / LOs, How I got my job in a Hedge Fund after graduation

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

Depends on the MBA school. Some Tiger cubs like Viking like recruiting for Stanford. I've also seen Columbia MBAs at some decent LOs.

 
Most Helpful

for LOs, it is very difficult and competitive:

Fidelity, Cap Group, T Rowe, Dodge & Cox, Wellington, PIMCO (fixed income) - generally the most sought after. Hire 2-3 interns total each usually from a mix of H/S/W/CBS/Booth 

Other smaller/more boutique firms like MFS, First Eagle, Artisan Partners, Alger, Hotchkis & Wiley, Pzena, Invesco, Royce usually hire a couple across the schools as well. Lots of other boutiques that are legit too. 

Generally a role at any of these firms is a great seat so cast a wide net and don’t target just the “top” because chances are you won’t land one.  

 

Apply for prop trading firms, they actually teach you the skillset of how to bet and manage risk, which is what you actually need to know if you want to eventually become a PM. I see so many analysts and researchers spend years becoming great at building great theses, but are terrible about portfolio optimization and bet sizing when they finally get a PM seat.

And the best part about prop trading recruiting is that you don’t have to do all of this bullshit networking like you would if you were recruiting for IB. It’s all merit based, so you’re assessed on your actual quant skills and not your ass kissing ability.

 

So firms like JS etc.? Do they hire MBA-track folks for QT roles? I was good at math and probability back in college but went into Product and VC so have lost touch but feel like I could pick it back up

 

not for QT but they have equity analyst/fundamental analyst roles which are markets facing (some shops even let them have a small book)

ull likely be second class to traders and qrs but very smart people around u, interesting work + very good comp

 

at least based on london, not many SM HFs offer internships. generally need to do networking to find anything, but even then relatively scarce 

 

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