I was just accepted into the Stanford GSB MBA program. I am looking to pivot to HF after graduating from the program, but don’t have prior HF work experience (currently in CPG space).
Looking to understand how challenging this pivot would be and what HF recruiting at GSB looks like? Any perspective would be greatly appreciated!
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Congrats on getting into Stanford GSB! That's a big win. Now, as for your question about pivoting to HF post-MBA, it's not a walk in the park, but it's definitely doable.
The challenge lies in the fact that HFs often look for prior experience in the field. However, being at GSB gives you a unique advantage. You'll have access to a vast network and resources that can help you make this transition smoother.
As for HF recruiting at GSB, it's quite active. Many top HFs recruit from there. But remember, it's not just about the recruitment, it's also about how well you can sell your story, your skills, and your passion for HF.
Here are a few steps you can take:
Leverage the GSB network: Reach out to alumni who have made a similar transition. They can provide valuable insights and might even help you get your foot in the door.
Gain relevant skills: If you don't have prior experience in HF, it's crucial to build relevant skills. Take courses related to investment banking, private equity, and financial modeling.
Get involved: Join finance and investment clubs at GSB. This will not only help you learn more about the industry but also connect with like-minded peers.
Prepare for interviews: HFs are known for their rigorous interview process. Brush up on your technical skills and be ready to talk about your investment philosophy.
Remember, it's a marathon, not a sprint. It might take time and effort, but with determination and the right approach, you can definitely make the pivot. Best of luck!
Sources: HF to PE post-MBA - my story and seeking advice (long-time poster)!, Does HBS 2+2/GSB deferred make sense for HF recruiting?, Q&A: Accepted to Stanford GSB / HBS / Wharton
I think a MM fund with a pod focused on Consumer Staples would be very interested in your profile. Could get into a top LO and stay there or use that to move to a HF later. Not many SM funds really recruit much in general anymore or from B School but you could get a chance at recruiting.
Main focus is to have a few stock pitches down and intelligent thoughts on the market/economy. Target funds that have a history of investing in CPG or are consumer focused, that is your competitive advantage
Incredibly helpful - thank you so much. Do you know off hand if many MM HFs / LO shops would be willing to accommodate a pre-MBA internship? I was thinking this might be a way to help ease my internship recruiting for the following year / build some experience
Only can get pre-MBA internships at top funds if you are diversity as that’s what they’re all focused on.
I did not have a buy side background and landed at a top LO out of MBA. Have friends who wound up at LO/SMs who also did not have experience. The best SM roles (tiger cubs, etc) went to people with experience though.
It’s a lot of work and a real grind but doable if you are committed. I went to CBS FWIW.
The point on pre-MBA internships is not true. Plenty of small hedge funds can use a little extra firepower and/or an internal channel check resource. Get a list of them and start smiling and dialing. Maybe shoot to negotiate enough comp to cover your bare necessities (like ~$60k run rate in SF or NYC) but don't expect to make much.
Thanks for the perspective. On the note of programs, I was also accepted into CBS, but have a certain reticence to choose CBS over GSB because acceptance into the Value Investing Program at CBS is not guaranteed.
Of GSB, Wharton and CBS (my top 3 choices), do you feel as though any really have a material “leg up” on the others as far as career pivoting to HFs go? Or are they all generally the same?
One draw to GSB for me has been the strong name brand and how well they place career switchers into the buy-side. But I’d love additional perspective.
So I’ll say this - if you’re the caliber of person that has gotten in to S/W and CBS (and wherever else), and you are actually dead seat on buy side recruiting, you will get in to the VI Program if you choose CBS. The program is selective but most of the people who are rejected are people who, like, recruit for IB and don’t know how to pitch a stock vs. people who actually want to recruit for public markets buy side. For HFs I have to imagine GSB is the best place to be in terms of branding. From there, I think it’s a tie between W and CBS VI program. At the end of the day, most HF recruiting even at well respected SMs is networking based and unstructured (excluding places like Elliott which you’ll have no shot at anyway without the perfect background). I have friends from the VI Program who wound up at large tiger cubs and other scaled L/S funds and yeah the program certainly helped get them in the door but most of the legwork was their own. Point being, I loved my time at CBS and VI was great experience/network to get. Idk how many people GSB sends to AM/HF but VI program sends 30-35 people in annually, the difference between that and the 40 person class being a few stragglers who go into PE/PC or sell-side ER. So you get a great network out of it. I don’t think you can go wrong. But personally would choose GSB over CBS, with the caveat the CBS probably has a better support system/mentorship structure that helps career switchers break in vs. GSB where people are more self-directed. That’s just my perception though. E.g. GSB is the only M7 that does not participate in stock pitch competitions. I don’t know if I would have had the same success recruiting that I did if I went to GSB because of that support system and guidance that I got from CBS and the VI program.
I made this move myself - but I spent a couple years in sell side research post MBA (Wharton) before moving to a SM and now a MM. Direct to buy side post MBA without sell side or buy side experience is also possible although I'm struggling to think of anyone who did that in my class. Personally found it helpful to start on sell side and build a network while taking my time on the job search front.
This is helpful, thank you. If one were to move directly into buy side, do you think there is a more convenient “jumping in point”? For example, would it be easiest to start at a LO shop like “Capital” or “T Rowe” and then leap to a SM / MM LS shop? Or would it be better to begin at a smaller LS SM and work my way up to shops with more AUM?
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