MM IB vs boutique buyside analyst position
I'm in my senior year at a non target and just got final rounds at a mm ib in nyc. I've also recently landed a full time role as a fundamental researcher at a small mutual fund in Greenwich (1B AUM). I have always been more interested in IB as a means to working at a HF or PE fund in later years. However, I believe I may have two differing options here in the coming weeks. I'm wondering if anyone has any insight as to which option will better position me for a job in PE/HF. I believe both opportunities will require similar hours and I'm indifferent about location (nyc vs ct). Thanks *I know I'm counting my eggs before they hatch but just asking for nonbiased advice since I can't get any from my school's recruiting dept.
1bn AUM isn't bad. It isn't the AUM that matters the most.. you should be focused on the fund's strategy as that will determine what kind of opportunity you'll get.
I believe that a good fund will prepare you better in terms of giving you an investor's mindset, but if training is weak you'll be inferior to IB peers insofar as modeling is concerned.
You're more likely to see recruiters reach out to you from IB than an obscure fund... however, I don't know how likely you are to get a HF / PE offer better than a good $1bn mutual, which you may already have.
I'd ask around where recent analysts from IB landed after their IB time and compare the median offer there to the fund you already have an offer in.
If it's a quality, reputable MM IB (Jeff, Macq, etc.), you'll get better HF/PE opps from recruiters than the mutual fund research role. And if you're actually interested in buyside and a keen learner, you'll be able to pick up on "investor's mindset" from the sell-side role, while probably developing a stronger technical skillset.
Thanks for the replies. The fund is a long only sector specific (energy) fund that has a small research dept. Id like to move to a more general fund, PE or L/S HF in the future. The seniors are all ex IBers so I figure the modeling training will be solid. Also the energy industry is known to require a lot of modeling (Ive heard). The comp is street with a smaller bonus structure based on fund performance...so not nearly as high as a smaller HF obviously.
Don't assume that ex-IBers will give you training just because of their background. Training relates to how staffed you are and how much time you have to help others; it also relates to investing style of your managers (i.e. quantitative vs. qualitative personalities).
One thing though.. in the end of the day, if you WANT to be technically strong, you don't need THEIR training, just SOME training - lots of bootcamps out there.. it will cost you some money, but maybe it's worth it vis-a-vis what you want to know.
The whole thing with the CFA is a different story. That may have good value. I don't have one and don't want to talk out of my ass.
Curious to know your opinion on this. I have no programming, VBA experience and will likely not get any at the fund or (I'm guessing) at the MM IB. Is this a skill that is required further down the line in the HF/PE world? I can see the value add of course but I figure since it's not something stressed at the analyst level at banks that it's not necessary at anywhere that recruits analysts from these places (other than quant shops). Am I right in this? I've considered doing a VBA workshop on top of the CFA and modeling that I will get at work...
FX
I'm sure VBA can make you a better analyst. I often wish I knew more excel and see people who are good at it come up with really cool work....... but I've never heard of VBA or programming being a requirement of any sort for a non-quant fund.
Excel will be your home as an analyst. If you have time and disposition to teach yourself hardcore excel stuff, I'd do it. Certainly wish I had had the initiative to do it while in school.
Also these guys will make me pass the CFA while I'm there...not sure what the ROI and opportunity cost of that is if I end up at a HF/PE
FYI They said on my super day that it was very little sell side work (writing post call updates, etc) and lots of industry research (ie model that output from xx basin) and heavy company specific dcf modeling
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