Associate in a new risk reporting team that is being built from scratch within a BB or Junior researcher at a HF?
If my final end goal is to eventually be a portfolio manager in an AM firm or in venture capital or private equity, would it benefit me more to start my career off as a part of a new risk reporting team in a BB that oversees both market and credit risks or just go straight as a junior research analyst in systematic + discretionary HF?
The team in JPM is being built from scratch and I will have a hand in building it and making it work, entering at an associate level. It is however in risk reporting, which I understand does not hold as much water as entering from a FO position, however I am not looking into getting into IB as mentioned above.
Which one would look better on my CV if I want to move to either of the aforementioned roles, given the fact that prior to that, I also hold a PhD from a top target uni in a highly quantitative physical science subject and a double masters in engineering + business management from the same target uni as my PhD (also engineering undergrad from another target uni)?
So want to be a portfolio manager and you're deciding between:
risk and compliance
or
working at an actual hedge fund
?
I love how vague / wide your "goals" are. You may as well have said: "i want to have a good job in finance."
Would the choice be different depending on whether or not you want to go to PE, VC or AM? Or are you saying that working at an actual hedge fund (however big or small) as a junior researcher, most likely a quant analyst (not trader mind you) be more favourable for all the exit cases listed? Wouldn't being able to help build a team from scratch within a big bank with an established name like JPM?
And Oreos, I wanted to be more general because I do genuinely do not mind ending up in either of those three (buy-side, front office), but surely posting the same questions to each individual forum will also get inflammatory and unhelpful reactions from people.
You sound like you don't know shit about shit.
In that case, he's gon' get got.
I probably don't but that's why I am asking. It's my first time on WSO and I am hoping for some decent answers. For instance, some people on here seem to think that if your are starting out in finance, it's always best to get a good name on your CV in the very beginning, since it will be risky to work for a company that may go under a few years down the the line.
OP, I think you alluded to the main issue to consider in your latest comment- how is the HF viewed/what is its reputation like? If it's a phenomenal fund that will be around, that's probably your best bet. Otherwise, given the (assumed) increased emphasis that will be placed on risk management at JPM, that could be a great opportunity (in my opinion, hedge funds will always need-or should use- people who can manage risk effectively).
Disclaimer: I'm in UG and currently interning in IB, so have no actual experience related to your question. Just done a lot of reading here/spoken to people.
imo, easier from the HF research fund, as long as their not making you grind like an IB analyst.
Risk management is also a good option, I've done it myself. make sure its market risk management, or credit but highly involved in financials. some credit teams aren't...and some market risk teams are just reporting....
Thanks you guys for the previous two answers. I was actually afraid that risk reporting is too close to being a BO job (is it officially BO or MO?) but it does seem to give a good overview of all financial instruments/risk management analytics, and relationship with senior management. Given the fact that it is a new initiative and you will be involved in building a team, I thought it would be a good start to a financial career that aims to move towards direct investment roles on the buy side, provided I stay there for only a year.
Bear in mind I have ZERO internship or work experience to my name and the only reason I am getting HF interviews and prospects is because I have a quantitative PhD from a target uni. As of the moment I am being pigeonholed by recruiters for quant researcher roles in mainly systematic FI HFs. I am not sure how easy it is for me to move from a systematic HF to a more discretionary (equities) environment (which I believe is a more attractive experience to have when trying to get into AM).
As for VC, I understand that the entrepreneurial route is the best route and it is almost a class of its own, however getting involved in risk reporting team building experience within JPM might somehow be beneficial as it demonstrates a more entrepreneurial spirit, but of course I may be completely off the mark and this is why I am here to ask questions.
For PE, I know that a stint in IB is the best route, but if I have to take the long winding route, I wanted to know where to take my first small step.
Risk in a bank =/= risk in PE =/= risk in VC
You don't demonstrate entrepreneurial spirit by joining a multinational company and focusing on a single skill set. That's like the opposite of an entrepreneur.
What do you specifically like about the VC world and how can your background contribute?
Given your background I think both roles are problematic, to be honest - I think if those are your only choices then which one you take should depend on your risk tolerance and level of confidence in your own abilities. The risk reporting role could give you a decent understanding of financial instruments but it will pigeonhole you onto the "non-investment" side and lead to an uphill battle. The HF role will likely be tough, hedge fund research analyst is like the toughest job to have as a relatively inexperienced guy, and if you don't succeed you could end your career goals before they even have a chance to take off. I would suggest looking for something in between those two, but if you're absolutely undecided and need to pick then I would go with HF.
Thank you for your reply! I agree about the HF junior research role being incredibly tough and perhaps even precarious. What kind of jobs would you suggest in this case, if my most preferred goal is going into VC, but I do not have enough savings or parents backup money to work in a start up firm/carry on with my own start up?
I was thinking of perhaps taking the risk reporting role with JPM to prop my CV up with a big finance name and a hand at the new inititative (which it severely lacks), BUT for no more than 1 year (afterwards I can carry on with a research HF job now that I have at least some more finance experience and more confidence or even strike lucky and go into an AM or PE (unlikely, I know I know) firm in a more investment/portfolio management related role. I know VC is out of the question at this point in time and I understand the route it takes to get there is long and winding, but I want to make sure I am at least not wasting my time on jobs that will do me no good and won't serve any purpose (admittedly, I feel a bit like that about my PhD).
Not to sound harsh, but if you want to go into VC then in many ways you would be starting out at square 1. From your posts I'm not sure how much you are aware of what PE and VC actually do. You have a PhD in a quantitative field and a masters in engineering - that doesn't jive well for top shelf fundamental investor roles like VC or PE (who tend to shun people with this sort of background) unless you somehow brought highly specialized knowledge to the industry they were investing in (such as tech or biotech for example) but even then it will be tough given the lack of investment experience.
I would say in your situation and for most people having a top brand on your resume is highly overrated and gives you a false promise for your career when in fact what you really need to succeed ultimately is to start building a relevant skillset in a professional setting as soon as possible.
I would suggest taking some sort of quantiative/analytical/research/junior-PM type role anywhere that you can quickly sharpen relevant skills in a real world setting at a reasonable pace without being under the umbrella of high stress and pressure, and then after some time like a year or two leverage that to a more desirable role. Or you could just roll the dice with the HF role if you have the stomach for it.
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