Investment Banking first or small Hedge Fund?
I have an option to return to a BB (think GS/MS/JPM) Investment Banking analyst coverage job full-time next fall after graduation, but also an option to start at a junior analyst level at a small (500M) hedge fund that currently only has 1 PM and 1 analyst. Pay at the HF is would be significantly lower the first few years (~75k all in), wondering what the best option would be long term? Any input helpful.
HF Pros: - More interesting work - Certainly better lifestyle - Exposure to all levels of how a fund operates
Cons: - Far less optionality afterwards - No analyst class social circle/network - No 'bank alumni' to draw on - Less pay - You might have to pick up some administrative work on such a lean HF team - HF could collapse/shrink due to investor withdrawals - If you leave finance altogether the bank is a more recognizable name
Unknowns: - Is location a consideration? - Do you have student debt that will accrue interest? - What's your long term goal? - Is it a general L/S fund or more specialized? - Which set of people did you like more?
I think the 'safe' bet is definitely to take the coverage group. You'll surely have options to go to funds that size after your stint