Starting on the buy side?

I know there are lots of thoughts about starting on the buyside -- would love to hear a little more. I am taking a buy side investment management internship and am not sure if this will limit me. The internship is in New York, at a company with ~$400B AUM

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Based on the most helpful WSO content, here are some insights about starting on the buy side, particularly in investment management:

  1. Internship Experience:

    • Exposure: Interning at a buy side firm, especially one with ~$4B AUM, can provide significant exposure to portfolio management duties, even if in a limited capacity. This experience is valuable and can be a strong addition to your resume.
    • Responsibilities: Smaller firms or boutique firms often offer more responsibility per person, which can be beneficial for gaining hands-on experience and understanding the intricacies of investment management.
  2. Career Path:

    • Transition Opportunities: Starting on the buy side can be a good stepping stone for moving to other areas such as hedge funds or other investment management roles. The skills and experience gained can be transferable and valuable in various finance roles.
    • Management Exposure: Working at a smaller firm can provide more opportunities to interact with management teams and participate in discussions, which is less common in larger, more institutionalized firms.
  3. Long-Term Prospects:

    • Exit Opportunities: While starting on the buy side might limit some traditional exit opportunities compared to starting in investment banking, it can still offer a solid foundation for a career in finance. The key is to leverage the experience and network effectively.
    • Specialization: Many boutique firms have specialized strategies, which can be advantageous if you develop expertise in a particular area. This specialization can make you a valuable asset in the industry.
  4. Networking and Skill Development:

    • Networking: Use the internship to build a strong network within the firm and the industry. Networking is crucial for future job opportunities and career growth.
    • Skill Development: Focus on developing both technical and soft skills. While technical skills are essential, soft skills such as communication and relationship-building are equally important in investment management.

In summary, starting on the buy side, especially at a firm with ~$4B AUM, can provide valuable experience and opportunities for growth. It may not limit you as long as you leverage the experience, build a strong network, and continuously develop your skills.

Sources: Advice for summer Asset Management interns, AM vs HF: The Business of Our Business, Incoming Buyside Equity Analyst - Seeking Advice, Please Advise: Never-Ending Job Hunt, Moving from Asset Management into IB / PE

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

I did a buyside internship and converted but decided against taking it FT.

Main reason was the lack of training, some of the larger programs (KKR, Ares, BX) have structured programs which make them worthwhile. Whereas we didn’t, I also saw how interns who joined FT were treated as basically jokers vs people who came from an IB background and the IB guys were just way more capable at the job and could do things much quicker.

As a result I passed and now am incoming at a BB so it worked out well but that’s my 2 cents

 

thanks for your response—can i ask which company this was for if you’ve moved on? mine is also somewhat small but they claim to have a very structured program, so hoping it’s not the same company haha

 
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I did my SA at an AM before choosing FT at a small HF. I’d say for me, the main reason why I chose to stay on the buyside is purely due to passion for markets.

I was always passionate about markets since freshman year of college, and couldn’t think of choosing any other career besides within AM/HF.

For me, the passion and learning opportunities within my full time more than made up for the unstructured nature of the role.

Mentorship is always a big thing within the buyside. When you have a really good mentor/boss, your work experience is really geared towards self development (whether that is catering projects more towards your interest, learning, or challenging you to think outside of the box).

Sure I may not have the same structured training as others do. However, I would argue that I was able to build a way more robust foundation compared to others given the bigger responsibilities, projects more catered to my interests, and a lot more rigorous/in depth review of the foundational concepts (ie read a lot of academic papers). Try to find a way to build your edge/niche within the firm that makes you stand out apart from others (just any sort of soft skill/analytical skill/background that no else has that is a value add).

Overall I’d say the buyside is not for everyone. But if you have a genuine curiosity for markets and a big drive to outperform, you will do just fine for yourself. Just stay grounded & don’t over stretch yourself in terms of career expectations (i.e. envy is always the thief of joy).

 

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