Is there any disadvantages to taking a hedge fund role as a graduate versus a an IB offer?

Are there any distinct disadvantages of taking a hedge fund graduate programme offer versus a traditional IB offer? Both offers would be for the London office.

Becoming a skilled investor is the goal in the long term but I am curious if anyone thinks I would be missing out on anything of value by not working in IB first?

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It really depends on career path you want for the long term. IB will set you up for just about any career in finance, but if you want to be on the buyside, then it's really not necessary to do IB before a hedgefund.

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If you want to be on the buyside (and are happy with the strategy), take the HF offer.

I did a brief stint in IB before moving to AM (Equities). There is very little that translates over. Sure, attention to detail, learning to make a beautiful powerpoint, and learning some excel functions are great, but you can build those in HF too. Besides, that is less important than developing a research process, learning how to think (junior bankers just don't do this critical part), and drilling into what matters, all of which you need / will learn in the HF role.

Also, be careful as another solid buyside offer may not come along, so if you have it, grab onto it with both hands and don't let go. Older you get, the harder it is to break in anyway, esp as post-30s.

 

Thank you. I was thinking along these lines too but did not want to miss out on anything critical.

 

Well the fund is a multi-strategy fund that does both quant and has a discretionary fundamental fund. Within the fundamental side there are teams focusing purely on HY credit, L/S equity, distressed credit etc. As a grad I would do rotations across teams of my choosing so it is rather flexible.

 

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