Odds of HF out of Grad
Hi guys, Junior year and recently received an opportunity to intern at a small HF (2-4 Billion AUM), this internship is one where I actually work with the PM and have a closer look at how things go, think of this as a prep for senior analyst/PM that's how close this will be from what I heard about it through the PM, at least in terms of responsibility. My previous experience before this was at a small time VC firm and then another micro but well know in their area HF. Since these firms don't particularly do return offers, what do you think is my probability to end up in HF out of grad. How do you think I can improve those chances, I doesn't really have to be Citadel or Viking, my expectations have been tempered through the years, I have seen guys quit finance as all together since they had big plans for after grad which didn't materialize. So that's the plan folks, I want to end up at a HF, anyone with similar experience as mine? Please share how you got into HF full time out of grad. Also, I do not do to a target school, public university west coast.
2-4bn isn’t small. Someone has to have done very well to launch and have a 2-4pm fund. <1bn is small. So first, I’d suggest you reset now you frame it.
Secondly, in my opinion, if just for an internship, I don’t know if you’ll learn more or less. Longer term, I think you’ll learn more because of the size of the team, etc.
thirdly, everyone has networks. So if you do great, they may recommend you to friends. Everyone is looking for good analysts these days and having an impossible time finding them.
Fourth, you may find a hedge fund job straight away, but it’s also not a bad thing to go to IB for 2 years and then come back. You’ll build skills and be more ready. Just saying that bc I don’t want you to be discouraged if it doesn’t happen. It may / could but it may not too.
Thanks for the advice. I’m networking as hard as I can, one head of a big firm told me that I should network twice as hard since I don’t go to a target school, he said that’s what he did because he too wasn’t from one, I’ve already made some good connections, but still, how many connections are too many connections.
There are never too many connections. You constantly make connections throughout your whole career, and the majority fizzle or don't amount to anything. Some grow for some periods, and other dies out. I am firm a believer that it is a numbers game. You talk to 50 people with varying connections, a handful materialize and are worthwhile, then interview with 30 firms. All you get are dead ends and you feel like you are not qualified, you don't have the right background, etc. Eventually something gives. You only need one to work out. Keep pushing, never step off the gas pedal, and you will increase your odds of finding the right person or right opportunity. Remember those quotes about right time - right place.
Right, that’s what I thought. Thank you for the advice.
500-1b is still not small whatsoever.
I would say <300mn is small in my experience with capital raising at my fund. Raising 500mn demands a powerful track and pedigree, my friend. Especially in the current environment.
Great advice and very spot on. Correct me if I'm off-base, but in my experience if OP has a good GPA, the VC internship and then a HF internship and good results where either or both would offer a reference letter and connections, and they're both firms with good reputations, I would definitely foresee the possibility of going HF straight out of undergrad.
For other stints to pursue before coming back to recruiting for HF if you need to? I would add-on that in my experience it doesn't have to just be IB as much as it's glorified on WSO. Being a portfolio analyst for a couple of years in PWM for HNW/UHNW, or credit analyst for large or enterprise level corporate lending, analyst for a mutual fund or ETF provider, etc are also well looked upon in my experience.
To answer your question OP, almost went through a similar path. HNW/UHNW PWM portfolio analyst intern and short FT stint there out of undergrad from a non-target to final round at a family shop where we were going to talk offer numbers. But because they took their sweet time and I needed to pay bills, I took the SEC reporting offer instead and they literally called me to schedule that interview fifteen minutes into my first day and I just had to tell them sorry, but I had to take something else for my best interests. I definitely still think about "what if?" a decade later, so definitely go for it OP and let me live vicariously through you lol.
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