Move from LO AM to S&T as analyst
I recently signed a contract with a top tier LO AM in London as an analyst in equity portfolio management. However, I do not find equities interesting at all as an asset class. I would much rather prefer to work in rates trading with the goal of making it to a macro HF or rates HF later on. Given that those funds mainly recruit from trading floors, my question is how I could now best lateral from equities LO AM to rates S&T (in London or Paris not US)? My company also offers the chance to do a rotation in a second asset class as part of its graduate programme. I could try to get a rotation spot in FI PM, Macro PM or the internal trading team but I fear that the more time I spent in LO AM the more difficult it will become to recruit for HFs down the road. I also applied for S&T graduate programmes before signing the LO offer but was not successful in getting many interviews as my profile was basically tailored to AM (I have interned with the company I will now join the year before and also did an internship with another LO AM before that). I know that getting the chance to work for a LO AM is a great chance many would love to be offered, but I am convinced that it is really not a great fit for my interests (especially the equities part). Do you have any recommendations? Should I try to move ASAP or finish the grad programme? Do trading floors even hire analysts with work experience? I already tried networking with some uni alumni in the industry, but that is not really that relevant for the London or Paris market.
To transition from LO AM to S&T, especially in rates trading, here’s what you need to know:
Leverage the Rotation Opportunity: Based on the most helpful WSO content, your company’s rotation program is a golden chance. Aim for a spot in Fixed Income Portfolio Management, Macro PM, or the internal trading team. This will give you exposure to fixed income and macro products, aligning your experience closer to what trading desks value.
Build Relevant Skills: Rates trading is highly technical. Start building your knowledge in rates, macroeconomics, and derivatives. Consider certifications like CFA or even specialized courses in fixed income or derivatives trading. This will help bridge the gap between your current equities-focused background and the technical demands of rates trading.
Network Strategically: While your alumni network may not be as relevant for London or Paris, focus on connecting with professionals in S&T roles at banks or trading desks in these regions. Attend industry events, reach out on LinkedIn, and join forums or groups where S&T professionals are active. Networking is key to uncovering lateral opportunities.
Timing Your Move: If you’re certain that equities LO AM isn’t for you, moving sooner rather than later is advisable. The longer you stay in a role that doesn’t align with your goals, the harder it may become to pivot. However, if you can secure a rotation in a relevant asset class, completing the program could add value to your profile.
Target Graduate Programs Again: Reapply to S&T graduate programs, but this time tailor your applications to highlight any macro or fixed income exposure you gain during your rotation. Emphasize your technical skills and passion for rates trading.
Do Trading-Related Projects: Even within your current role, find ways to work on projects or initiatives that involve macro or fixed income themes. This could include analyzing interest rate trends or contributing to discussions on macroeconomic factors affecting equity portfolios.
Yes, Trading Floors Hire Analysts with Experience: Based on previous WSO threads, trading desks do hire analysts with prior experience, especially if you can demonstrate relevant skills and a strong understanding of the asset class. Your LO AM background can be positioned as a strength if you frame it as having developed a solid foundation in markets and portfolio management.
In summary, use the rotation to gain relevant exposure, build technical skills, network aggressively, and consider reapplying to S&T programs. If you can make a strong case for your interest and capability in rates trading, you’ll improve your chances of making the lateral move.
Sources: Q&A: Non-Target School to Portfolio Manager at a Top Hedge Fund – 6 Years Out of Undergrad, Q&A: Non-Target School to Portfolio Manager at a Top Hedge Fund – 6 Years Out of Undergrad, Q&A: Equity Derivatives S&T, https://www.wallstreetoasis.com/forum/private-equity/going-from-mm-investment-bank-to-mega-fund?customgpt=1, S&T Summer Analyst Lateral to IB FT?
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