AM or ER after Retail Banking
Hi everyone,
I graduated from a non-target with a degree in Finance/minor in Econ 11 months ago. I had a pretty decent GPA (3.56) and I got a job as a financial analyst at a retail bank after graduating, which is where I work currently.
In college, I was the portfolio manager of a small ($3.5M AUM) student endowment fund. It was a lot of fun and I have been interested in AM ever since, but there were not a lot of AM jobs available in my area after graduation, hence why I now work at a retail bank because I needed an income immediately.
I was hoping someone could help me in determining how I can transition into an AM (or ER) from here. I have considered an MBA or a CFA a lot, but I don't know which, if either, would be most beneficial. Any insights would be very much appreciated!
Hi jake.kirsch013, don't worry, the WSO Monkey Bot is here.... I'm hoping one of these links will help find your answer:
I hope those threads give you a bit more insight.
Desperate bump
Keep applying, keep networking, and study for CFA while you do that.
If nothing works out, go get an MBA. Still the most useful thing in terms of changing careers.
Thanks so much for the reply! I thought my thread was toast. On your point about networking, do you have an opinion on networking through LinkedIn or other online means (i.e. do you think it's ineffective)? Also, I have met a lot of people who hold a high degree of cynicism to the value of a CFA and the cost of an MBA. Do you think that, in a broad sense, these criticisms should be considered, or disregarded?
I can only speak for myself but I always reply to people on LinkedIn. Email is great too but buy side market guys get hundreds/thousands of emails a day so it can get lost in the shuffle.
RE CFA: the inside joke is that almost everyone agrees it is useless. But if you are being honest with yourself, are you doing something productive with your free time instead of getting the CFA? If not, you might as well study for it. No real downside. And FWIW, its difficulty is grossly exaggerated.
RE MBA: that's a tougher decision that you will have to make. If you can get into a top school, I think its worth it just because it lets you hit the reset button in your career. Just be smart about it. Don't spend 100k+ to go to another non target. You just graduated so you have a lot of time. Apply to every relevant job in every location, you're bound to find something.
I agree with everything said above. At this point it is really about grinding it out and trying to get to know people. In this industry, we tend to hire who we know and trust. Who you know is really important. Especially if you consider the current environment (many hiring freezes) and the fact that you are coming from retail banking. Limited spots available to a large # of applicants and zero funds are going to hire a non-target from a resume drop.
While you are building a network, it is important to showcase your interest in AM/ER through actions. We can argue about the merits of the CFA designation all day but everyone knows that its a decently large time commitment - that means something when you do it on top of a full-time job. I assume that you have your own brokerage account, right? Track it and evaluate stocks like you would if it were your career. That way you have things to talk about and don't come off as an idiot when you are networking.
Asset managers recruit out of top MBA programs. Less so from mediocre ones... So the value of an MBA will really be determined by where you go. You will essentially be paying for their network. So not worth if the school doesn't have one, in my opinion.
Thanks so much for your detailed response! I notice a lot of MBA programs, especially top ones, want their candidates to have a few years of work experience before beginning. What would you be doing to further your career while also gaining this experience? I have thought of earning some certs, but don't really know where to start with it.
As far as MBA/CFA, I lean a bit more towards MBA just because I've read so much about CFA from both proponents and opponents, and nobody can seem to agree whether it's worth the effort/money/time. However, almost everywhere I look people recognize the value of a highly-ranked MBA. My apprehension lies in being in debt $100k+ just to rub elbows with a bunch of elite finance guys. It feels to me like it's almost like a 20+ year prison sentence.
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