Undergrad HF Internship recruiting
I’m a current sophomore at a semi-target/target looking to recruit in the spring for SA 2024 at some of the larger HFs that have internship programs (Point72, DE Shaw, Millenium, Citadel, etc.) and am looking for some insight into what to expect going into recruiting since HFs aren’t as structured as banking.
I know banking recruiting involves a lot of networking, is it as big of a factor for HFs?
What sort of resources should I look into other than the BIWS guides normally used for banking recruiting?
I’ve pitched stocks within clubs at my school but haven’t participated in a formal stock competition. Could this potentially be an issue for me?
Have an internship offer for one of the places you mentioned for 2023.
Didn't do any networking and wasn't asked for a pitch or any technicals. Not saying this is normal at all and you should expect them but I don't think networking is as important. I was asked for a soft pitch (not an equity, just asked to talk about good businesses and challenges they might face) and asked some business theory + behaviourals.
So did you just cold apply to internships?
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The places you listed are big enough that they’re relatively structured, reminiscent of banking. The Wild West recruiting really is more applicable to smaller places
I'm interning at HF next summer and didn't have to network before hand (which I enjoyed since I think networking is silly and showing that you can do the job is more important). I was given a case and ran through several rounds of interviews (mostly behavioral after I got past the case round). Also, coming from a non-target/semi-target if that's helpful to know. What's important is that you show a passion for investing. Highlight what you're doing outside of classes to become a better investor. Best way to prep is to understand the basic equity research interview questions (pitch a stock, tell me about an industry that is interesting to you, why do you want this specific role, etc).
When do these apps usually come out? Looking to apply SA 24 as well.
realistically, expect to get rejected from all of these places no matter how hard you prep. Point72 is the only one of those listed that publicly releases their offer rates, and it is something like 0.2%. I would assume the others are similar (under .5%). you should instead put your heart into banking recruiting with low expectations/effort for hedge fund recruiting.
Banking recruiting has very similar numbers though. In April GS said they accepted 1.5% of internship applicants across all internships - I would guess IB has a significantly lower acceptance rate than the average internship at the company. EB’s I would imagine have a similar rate to what Point72 reported
It is safe to say IB is the most applied to and has the most spots. Let's assume GS IB, the most competitive of the big banks, has a .8% offer rate. There is still a very significant difference between .8% and .2%. Also, the quality of applicants who apply to hedge funds is far more competitive. Keep in mind-there are about 2,000 investment banking junior internship spots across all reputable BBs, EBs, and MMs in the US in a given year. That number is less than 150 for reputable hedge funds. Big big difference. Therefore it is best to focus on the best risk adjusted outcome.
I don’t think this is a good attitude or perspective. IB and HF are very different roles (and have different work life balance, usually culture, etc). Why put your heart into IB if you want to be at a HF? I can understand casting a wide net (AM, etc), but it is also a bit counterintuitive to say to put the least effort in the hardest thing to get, considering the people who get that are those who put the most effort in.
Also, risk adjusted outcome? Go get a retail job where your odds are nearly 100% and you’ll make $30-40k, better than the 1% odds you are giving yourself at the $150k job.
I understand being realistic, and people should know what they are getting into. But there are people who look at that challenge and walk away/give up and others who fight it with all they have. If you want to be successful in the HF space you have to be the latter.
This is bad advice, I have an offer from that very fund and a few banks for SA 2023. You should definitely put all the effort you can into something you want to get; I can't imagine ever doing otherwise and expecting anything less than poor outcomes.
Would also recommend you consider some of the top shops that recruit undergrads w/o the MM model. Places like Bracebridge, Weiss AM, Farallon, Abdiel, etc are arguably better seats out of school if you can get a FT offer. Some will start in the spring.
Do you know if these firms or any similar do SA internships? I know scouring LinkedIn is the easiest way to find out, but would love to hear some places you know off the top of your head.
They all do I think
MLP doesn't have summer internships, but full time process isn't hard until like the last two rounds.
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