Moving from Distressed/Opportunistic Credit HF to Real Money Credit Analyst
Hi all,
I’ve come to the realization I don’t want to be stressed forever working in the hedge fund space. While it is exciting and the comp is high (certainly more variable), I’ve realized I want more stability in life and to be able to build a family and not be stressed all the time for the prospect of clearing 7 figs each year.
I’ve got about 8-9yrs experience now and of that around 5 at credit hedge funds. I’m looking to move to credit research roles at like a PIMCO where I can be happy with mid 6 figs and potential career advancement if it happens, but I don’t seem to be getting any traction at all in the the PIMCOs and ABs of the world. I don’t have an MBA or CFA but have a pretty blue chip background otherwise (H/S/W undergrad, GS/MS IBD analyst and well-known hedge funds + 1 start up HF with decent pedigree). I get I’m not the typical profile that covers 30 credits in a specific industry day in/day out, but I was wondering if there’s anything I can do to try and break in to the real money scene. I was thinking plan B to do an MBA or something and recruit to a large AM that way but hoping others have some advice for me.
Transitioning from a distressed/opportunistic credit hedge fund to a real money credit analyst role, especially at prestigious firms like PIMCO, requires a strategic approach. Your extensive experience in credit hedge funds and a solid educational and professional background provide a strong foundation. However, the shift to a more stable and less stressful environment in asset management (AM) might necessitate additional steps to align your profile with the expectations of real money firms. Here are some actionable strategies:
Leverage Your Network: Utilize connections from your alma mater (H/S/W), Goldman Sachs/Morgan Stanley, and hedge funds. Networking can often open doors that traditional applications cannot. Reach out to alumni or former colleagues who have made similar transitions or are currently working in AM firms.
Highlight Relevant Skills and Experiences: Tailor your resume and cover letter to emphasize skills that are transferable to a real money credit analyst role. Focus on your analytical abilities, experience in credit assessment, and any direct exposure to the types of investments that firms like PIMCO focus on.
Consider Earning a CFA or MBA: While you've achieved significant success without these credentials, obtaining a CFA charter or an MBA could enhance your appeal to AM firms. These qualifications are highly regarded in the industry and can compensate for the lack of a traditional AM background.
Showcase Your Ability to Adapt: Real money firms might be concerned about your transition from the high-pressure hedge fund environment to a more stable AM setting. Address these concerns by demonstrating your adaptability and long-term commitment to a career in asset management.
Engage with Recruiters Specializing in Asset Management: Some recruiters specialize in placing candidates within the asset management industry. Connecting with these professionals can provide insights into what firms are looking for and help you navigate the application process more effectively.
Educate Yourself on the Real Money Space: If you haven't already, dive deep into understanding the specific strategies, investment philosophies, and operational nuances of real money firms. Being well-versed in these areas can make you a more compelling candidate during interviews.
Consider Adjacent Roles: If direct entry into a credit research role proves challenging, consider related positions within AM firms that could serve as stepping stones. Roles in risk management, portfolio analysis, or product strategy might offer pathways to transition into your desired role over time.
Remember, persistence and flexibility are key. While the path may not be straightforward, your unique background and willingness to adapt can ultimately make you a valuable asset to a real money firm.
Sources: Transitioning from High-Yield/Performing Credit to Distressed HF, Buy-side credit research to hedge fund?, Q&A: HF Analyst @ $5bn+ Fund - Breaking In and Transition to Risk-Taking Role, Q&A - research analyst at credit hedge fund, Q&A - research analyst at credit hedge fund
At large LO it's a different game and you're covering more like 80+ companies not 30 day in and out. I would try to MBA route to be honest - it's the most common path to these LOs. You should be good for HSW given your background. LOs like people with more experience in the MBAs too.
Unrelated, but i am going to do credit trading at a bb soon, what skills do you think I would require to prepare myself? Credit modelling?
TIA
I see lots of guys who move from credit trading on sellside to trading on the buyside. I would just make sure you spend the time learning and can speak intelligently on why you did certain trades and build buyside relationships - don’t think modeling helps but know your credits well
thank you for your reply, i’m sorry if i did not phrase my question correctly.
I’m going to be an intern in the credit trading desk and was wondering what skills I would need there to do well and hopefully secure a conversion. What knowledge do you think would serve me best to learn now as someone with no experience in credit?
A few points from my end.
1. Are you interested in CLOs too? Or are you mostly focused on traditional LO AM shops like a CapRe, PIMCO, Lord Abbett, or similar. If so CLOs may be a bit cleaner and for example Antares, Octagon, and Jefferies all have senior analyst-like seats open on Linkedin right now for CLO Analysts.
2. How is your network / have you tried networking? Alot of the larger LO AM places have people there that are more senior with that traditional credit HF background. For example I can think of people at TCW, Lord Abbett, PIMCO, Artisan, CapRe that all come from these backgrounds. Also alot of these places are so big that if you are just shooting resumes out to listed positions a random HR professional at a LO may not recognize what a Davidson Kempner, King Street, Brigade, or a Silverpoint is much less what a smaller but selective fund like a Nut Tree, Stonehill, or a Silver Rock type of place is. I've run into this issue with headhunters that do private equity / hybrid capital recruiting who should know.
3. Are you open to more opportunistic groups at LO platforms? A few of the aforementioned groups like Lord Abbett, PIMCO, Artisan also run those types of strategies.
4. What about firms that run kind of HF like pools of capital but also run LO-like pools of capital like a Beach Point, Oak Hill Advisors, etc.?
MBA seems like a bit overkill especially based on age / likely current comp levels.
How would you weigh the pros and cons of these different options out of curiosity (WLB / career stability / comp / upside)? Just asking as you seem fairly knowledgeable
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