Strategist (Sell-Side) vs Execution Trader (AM)

Based on the most helpful WSO content, here's a breakdown of your situation and the potential paths:

1. Macro Strategist at a BB

• Pros:

  • Strong pay potential at the bank.
  • You maintain a good relationship with the team, which could make the transition smoother.
  • Strategist roles can lead to PM roles, especially if you transition to a pod or sub-PM role later. However, this path often requires additional steps, such as moving to a hedge fund or pod shop where you can take on risk and build a track record.
  • Strategists who excel at generating actionable ideas and building relationships with traders and PMs can position themselves well for future opportunities.

• Cons:

  • As you've noted, the strategist role often involves publishing and marketing, which may not align directly with what PMs at pod shops typically seek (e.g., trading experience or direct PnL responsibility).
  • The transition from strategist to PM is rare and challenging, requiring either exceptional networking or a unique opportunity.

2. Execution Trader at a Top AM Firm

• Pros:

  • Execution trading roles can provide hands-on exposure to markets and trading, which are highly relevant skills for macro PM roles.
  • While the AM firm may not have a history of traders moving to PM roles, your trading experience could make you more attractive to hedge funds or other firms seeking macro traders with execution expertise.
  • This role offers the opportunity to learn and develop skills that align more closely with what PMs value, such as risk management and market execution.

• Cons:

  • Internal mobility to a PM role at the AM firm may be limited, as there’s no precedent for such transitions.
  • You may need to move externally to achieve your goal of becoming a PM, which could take time and effort.

Key Considerations:

• Strategist Path: If you’re confident in your ability to network and transition to a pod or sub-PM role later, the strategist role at the BB could be a viable option. However, this path may require additional steps and patience.
• Trader Path: If you’re looking to build skills that are directly relevant to macro PM roles and are open to moving externally, the execution trader role could be a better fit. This path aligns more closely with the skill set PMs typically seek.

Recommendation:

Given your goal of becoming a PM and the challenges you’ve faced as a strategist, the execution trader role at the AM firm seems like the better choice. It offers the opportunity to develop trading skills that are directly applicable to macro PM roles, even if it requires an external move later. However, if you value immediate pay and stability, the strategist role at the BB could be a safer option.

Ultimately, the decision depends on your risk tolerance, long-term goals, and willingness to navigate the challenges of each path.

Sources: Routes to Buyside PM, Q&A: Non-Target School to Portfolio Manager at a Top Hedge Fund – 6 Years Out of Undergrad, https://www.wallstreetoasis.com/forum/private-equity/why-i-left-pe-switched-to-the-public-markets?customgpt=1, Routes to Buyside PM