AllianceBernstein Reputation and Rotational Program
Can anyone offer up-to-date insight into the reputation of AllianceBernstein’s buyside mutual fund business? I’m interested in their Equities Rotational Associate Program (i.e. their track to become a fundamental research analyst) and all the WSO posts surrounding this topic are quite dated.
According to the job posting, you complete four six-month rotations in which three are placements on actual investment teams and the fourth is a big data rotation. It appears the program offers mentorship from senior analysts and close interaction with “portfolios managers and other senior investment professionals”.
- Is this program as good as it sounds?
- What is the reputation of AB in the mutual fund business?
- Would exit opportunities be similar to the likes of PIMCO/DoubleLine or would they also include hedge funds? (It appears AB manages some hedge fund assets)
Thanks for the help in advance!
bump
So I interviewed for this role a while back - seemed like an interesting program. Now reputationally, AllianceBernstein is somewhat "middle of the pack" within the mutual fund world. Their equities business doesn't really generate the returns (and as a result, the AUM) of a top-tier firm like a Wellington or a Fidelity. Their fixed income business is probably a little better, but it's definitely not at the level of the PIMCOs and DoubleLines of the world.
That being said, AB is still really big, and people definitely know the name. If you can get a job there, take the job. After all, it's not like undergraduates can really pick and choose their buy-side opportunities - I don't think people on WSO fully realize this, but long-only fund have very, very small associate classes compared to investment banking, etc. In fact, I'm pretty sure AB's equities rotational program only has, like, 3 associates per year. Just to put that into context...
Thank you for the response! Really appreciate the insight.
You are exactly right - I think the associate class for equities is 2 per year on fundamental side. A LinkedIn search shows these kids to be pretty impressive (targets + investment management experience).
Would you say that there is an advantage to starting on the buy-side? Specifically, how would you compare these career paths:
As a general rule, it's better to start on the buy-side rather than the sell-side, since there's no better way to learn to invest than by actually investing.
Another way to think about it: associates on the sell-side are usually still looking for their next exit opp (with the exception of those who want to stay in the industry and become analysts). In contrast, the buy-side is the exit opp unto itself.
That being said, there are definitely cases where the lines blur. If you work with an II-ranked sell-side analyst at a good firm, that'll probably give you better options than working at a $100M hedge fund that nobody has ever heard of. And as the other guy in this thread noted, AB's sell-side division is probably one of the best in the industry. So if your end goal is to move to a hedge fund anyways (as opposed to staying at AB), then the two options might be a bit more equally matched.
Would recommend their sellside research over buyside part
Interesting. What's your rationale?
Better exit ops? Better reputation? Better training/exposure to research teams?
I think it’s for the exits.
Hey coming from someone who works in sell-side ER and wants to work in buy-side asset management. It is much better to start on the buy-side first if you have the opportunity. The "sell-side has better exit ops" theory is flawed if your heart is set on buy-side AM already. The bottom-line is recruiters reach out to me for other sell-side positions and recruiters for buy-side roles reach out to people with buy-side experience.
You don't learn to think like an investor on the sell-side, you learn how to cover companies. It is a big difference in thought process and it is something you would have to prove if you want to move from sell-side to buy-side later. Since I have prior buyside experience, I am able to see this difference much better than someone who hasn't worked on both sides.
Alliance Bernstein is a large and respected asset manager. You will have an easier time with exit ops to other buy-side shops than you will by going into sell-side first. The entire sell-side industry right now is under major headwinds with MIFID 2 regulations coming in and competition for buy-side positions is only going to increase going forward as more people on the sell-side look to hop to the buyside.
One way you could get pigeonholed on the buyside however is if you were to go to a small fund with a very niche strategy, it could be difficult to move to shops with other strategies. Maybe the theory that it would be easier to move sell-side to hedge fund holds, but I am pretty skeptical. Overall buy-side is a much better starting point in my opinion, and I would've taken AB buyside over my ER role at a bulge bracket shop in a heartbeat.
Great advice, thank you.
Dolor itaque quibusdam et et et quos. Repudiandae reiciendis nisi non cupiditate alias iste.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...