Advice for wishful PM
Hi all and thank you for this forum
I am hoping for some advice on career path and strategy on how to become Portfolio Manager.
My background
University major in Finance
CFA charterholder
Working for Reuters as a product specialist (6 years on various roles and countries but not quite in some financial hubs).
I just moved to Dubai so i can have better access to these positions (its not London or NY but this was only option)
I am just under 30
I am highly analytical person and i am constantly following and comfortable with current financial development and news.
The question is simple i guess
What to do and where to start so i can shift my career to a path that will eventually take me to PM role which is what I've always wanted ?
Thank you so much for your assistance
It wouldn't seem like you have any experience to this point in analyzing securities. An MBA would be the most normal path, but I'm sure there might be opportunities with firms based in Dubai or with satellite offices there looking for young analysts. You'd likely be moving backwards in your career, but I don't think there's a likely path for you to move laterally.
You'd likely want to find the largest firms which would have full blown training programs to help you get up to speed. So whether you start on the sell side or the buyside, you can gain experience in how to make money, which is how you could become a PM one day. Do not fall for jobs at financial firms that aren't related to direct investing. These jobs may get you nearer, but there's no likely transition, and you'll eventually be closing doors as you continue to gain experience away from investment positions (you are near 30, no one hires 35 year olds to take junior research positions).
If you have no interest in moving into an analyst role first, and just want to manage money, you need to prove that you can make money. Find a product that you want to trade and do so successfully. Running money is hugely competitive, and having interest/passion isn't close to enough. You need to prove success. If you can make money in your personal account, there are firms here in the US which will give you $ to trade and training. They tend to keep you on a very tight leash. I don't know if there are similar firms in Dubai.
For whatever positions you apply to, you are up against stiff competition. Best of luck.
Thank you Grosse So my options are MBA or Analyst or start investing and build good track record
How would MBA help me though. I mean i still wont have any experience analyzing securities?
Regarding Investing on my own, that's something that i am working on in the last couple of months so hopefully within 1-2 years i'll have good record. Having said that, will good investment results and relevant academic experience like CFA be enough for some more serious (bit senior) job at Asset Management firm? Or i will still need to start from Analyst role or similar?
Thanks again for your comments
MBA helps because from the point of view of an employer, getting an MBA (from a good school) proves you are smart and can work hard, otherwise you would not have made it into the MBA program. They have no idea if you'll be a good analyst, but they only want to spend time teaching those who they think are capable of handling it.
MBA programs also have asset management firms come to them for recruiting, so you've got a direct way of landing an interview.
Without that, you are submitting a resume onto a website and we all know the probability is low.
In terms of investing on your own, it's a way to show passion and capability. No one will care much though if you can generate good returns on whatever money you have in your personal account. There's a big difference in terms of running PA money and millions or billions for an AM firm. You would likely need to start at a junior role still.
I mention this route as I have a friend who got a job at a prop trading shop where they let you lever up your own money. If you do well, they relax restrictions and give you more capital. That's the most direct way to go from where you are to managing money. My friend with his MBA did not succeed, while there were guys who just had a knack and made themselves and the firm a lot of money.
If you can show success investing on your own, those types of firms will be more apt to give you a shot.
Again, I don't know if they have those types of firms in Dubai, but just google "prop trading shops"
I understand but as you said, having MBA is way of companies selecting the smart and hard working people as they are the ones to finish good MBA. However i though having CFA (especially passing it with flying colors) would prove that i am smart and certainly hard working.
If i have to do MBA then most i can do is Executive MBA from LSE or Insead in UAE or Global (part online) MBA from IE Business School in Spain. These are i believe well respected universities and i wont have to leave my job. The downside is they are 100k+ so i am not sure if i am better off investing those money in the market or in the MBA. Do you agree with this?
Again, thank you so much for taking the time to answer my questions
There are a lot of questions on these boards that are similar to yours -- I have a non traditional background / I went to a non-target school / I am not in my targeted industry yet / other hurdles to overcome. I suggest you take a look at some of those threads and compare yourself to them. Look at some of the suggestions and what some others have tried to do in order to get to where they want to go.
The message is always the same - it is really really freaking hard to get where you are targeting, even without hurdles to overcome.
My own story - I worked for a boutique ibank but not one of the well-known boutiques. I was looking to get a hedge fund job. A recruiter from a top recruiting firm told me that my best option was to apply to a bulge bracket bank as an IB analyst again, I'd have a major leg up on everyone, do that for two years, then it'd be a much easier transition.
I said hell no. No way was I going to do the IB analyst stint again. And I made it to the buyside. Maybe some luck, maybe that it was a good market so HFs were hiring. I made it without taking that step back, but I'm advising you to do the opposite.
If you take 1,000 people with your background, some very small % of those people make it to the buyside through some combination of luck and determination. A better % though make it if they take that step back, go back to school, take that more junior position but in the right field.
So that's my advice. A CFA is great, but helps you stand out if you are sell-side equity research or looking to move between buyside shops. Less useful if you are outside the industry.
Usually, the question on the cost of the MBA is if you are in a high enough paying position, will there be a strong benefit from getting an MBA in future earnings. It doesn't sound like you are where you want to be and Reuters product specialist likely doesn't compare in terms of pay to buyside jobs. I think the cost/benefit analysis would be pretty clear, as long as you are talking about top MBA programs.
I have decided to enroll to IE Global MBA. Thank you for helping me with my descision
I don't think part time and online MBA programs offer the same recruiting and networking opportunities as a full time program. You might be wasting more time and money again. Grosse gave you some solid advice but I think he meant full time MBA at a top school.
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