Software Engineer to Jr. Hedge Fund Analyst (Is it Easier vs. traditional path)

I was wondering if it is actually easier to join a tech-focused hedge fund being a software engineer with strong finance fundamentals and opinions in the tech space, as opposed to a traditional I-Banker and Equity Research Analyst.

I've been dabbling and taking finance seriously since sophomore of high school and am familiar with Derivatives (Trade options with diff. combination/spread trade strats.), Ofc. Equity Valuation & Value Investing (PMV, Earnings Power Value, DCF, Comps, etc.) How to look for Distressed Debt Opp., Real Estate Valuation (as a former acquisition analyst), and have a decent Accounting foundation.

I frequently follow tech stocks and have my own thoughts for several large cap tech co.

I'm going to be a software engineer for a big bank, and hope to join a FAANG to really polish my skills and understand the tech. stack well. Then I want to transition into a hedge fund or maybe a VC. I believe in going through the hard work and being in the space before investing in it.

I was wondering given my situation, is it easier to break into a tech-focused hedge fund (coatue management, etc.)?

Background: Going to be a rising Sr., studying Finance,CS @ 2nd tier school; Worked in a startup HF, RE Acquisition Shop, Gonna be a SWE at a big bank. I like the concept of VC, but really like making trades in the secondary markets and delving deep in understanding companies in the secondary markets.

Ofc. I would love to create my own VC/Investment firm; Many VCs are pivoting towards banking/secondary investing style (A16Z.) Hopefully I could do something like this in the future.

2 Comments
 
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Very nontraditional path. If you did end up in FANG with strong finance skills/ moldable into an investor, I think a lot of funds would love that. It's one of those things that I personally think sounds way cooler/ smarter than it is ("he actually worked in tech so he has insider view/ understands how things work etc..."), but its the kind of thing people really fall for. Especially hedge fund people, who are mostly a bunch of replaceable drones but all think they're iconoclasts.

My only caveat is that I'm obviously saying this at the top of a tech bubble, when everything associated with the industry has that halo of specialness. On the other side HFs might not think a FANG guy who understands balance sheets is special

 

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