PWM or Energy Trading?

I am currently working in PWM at a major wire house. I have been out of school for about 2 years from a non-target. I have the opportunity to join a top group at my current firm. This group is in the top 100 in Barons and would be a great opportunity.

I also have an opportunity to join an energy hedge fund at an entry level position to move into trading.

I am trying to decide which would be best, I would prefer trading but want to consider everything before making this decision. I am a long time reader and would appreciate a little help!

 

A PWM team that likely has north of a billion in assets is a pretty sweet gig, for the senior guys. Whether it is a good gig for you is impossible to say with the amount of information you have given us. What would you be doing there and do you have any path towards equity in the book?

 

in my opinion, energy trading would be badass. Right now it's going to be rough, but you can always go back to PWM (maybe not in the capacity of your current offer though) if you really don't like it.

I'm from Texas though so I might have a bias. Energy is long-term and it may be interesting to see the battles between energy resources and economic influences that make or break certain industries

 

I would be acting in a supporting role to the senior advisors, as well as working towards building a book of my own. I would have an opportunity at equity as some smaller clients would be passed down for me to service and the assets would be hitting my book. Would also 'inherit' assets as team members retire or leave.

At the hedge fund would also be in a support type role, generally this last for about two years, then have a shot at a desk.

I guess it ultimately comes down to risk. I still have to sit down with each side and hash out some more details, I have meetings set after year end.

 
Best Response
pgaap1919:
I would be acting in a supporting role to the senior advisors, as well as working towards building a book of my own. I would have an opportunity at equity as some smaller clients would be passed down for me to service and the assets would be hitting my book. Would also 'inherit' assets as team members retire or leave.

At the hedge fund would also be in a support type role, generally this last for about two years, then have a shot at a desk.

I guess it ultimately comes down to risk. I still have to sit down with each side and hash out some more details, I have meetings set after year end.

Don't discount the inheriting the book as people retire. That can be huge money for you 10 years down the road. From a purely financial standpoint, I see the PWM role as having more upside, less risk, and you can have a longer career, assuming the part about being able to work into the book and book inheritance is possible. If you inherit that book in 10 years and switch firms, you can expect an enormous payday.

Someone mentioned that you can always go into PWM later....I disagree. While it is technically true that you could go into PWM later, joining a team like this and starting on your own are radically different propositions.

 

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