Asset Management in this market???

Have been made an offer to join a reputable boutique AM as a Equity Analyst focused on Long only equity portfolio.

What do people think of this as a career option in the current market bearing in mind it is something I really want to do.

I would be leaving my current mid-mkt M&A boutique which seems a safer bet in the current climate but is not really what I want to do. Although having a job at all is obviously the priority!!

Thanks

 
Best Response
bearing:
This is my own insight but how can you collect fee's when people are withdrawing their funds. You also can't collect a performance fee on losses.

Are you suggesting that investors will redeem their money and stay in cash for a significant amount of time, rather than reinvest the proceeds with other money managers? If so, I think that's unrealistic.

To the OP, I don't think AM or IB is superior to the other now or in the foreseeable future. Both industries will suffer a bit due to the coming bear market, so you have to go with where your heart is at.

Like you, I did banking and then realized I really wanted to be in Asset Management and manage money. I think researching and investing in stocks is much more interesting than working on pitchbooks and selling deals to clients. Try to figure out which industry you are passionate about and go to it.

 

This is the job you "really want to do" - so do it already.

The only downside is not knowing whether they will still be around in next couple of years so do your due diligence:

  • what's their AUM? (obviously higher the better)
  • who are their clients? (FoF and retail will be more fickle, pension money more sticky)
  • how has performance been? (long only is done on basis points relative to benchmark)
  • how is the portfolio constructed and who calls the shots? Is this a person that you respect and can work with?

To bearing, long only don't charge performance fees although may do in 130/30 type products going forward.

 

To Bowser, we are witnessing record redemptions, liquidations and withdrawals. Luckily for hedgefunds, they have lockup periods and fines. Other guys dont. Everything is suffering...

 
LAWM:
To Bowser, we are witnessing record redemptions, liquidations and withdrawals. Luckily for hedgefunds, they have lockup periods and fines. Other guys dont. Everything is suffering...

The OP said:

"What do people think of this as a career option in the current market bearing in mind it is something I really want to do."

He was not asking what do people think about AM over the next few weeks or months. He asked about the industry as a career option, meaning years and potentially decades.

Sorry, maybe my tin foil hat is not properly aligned, but it is completely ridiculous to avoid the AM industry as a career option just because of the current market. Granted, volatility and fear are at extremely high levels, but people are not going to keep cash under the bed for the forseeable future.

Some money managers will get wiped out due to this mess, but the industry will survive, and if you have a passion for it then don't let this mess deter you.

 

Dignissimos et ea at voluptatibus veniam rerum vel. Et rerum sequi rerum rerum. Natus at qui eaque non. Voluptatum voluptatem laboriosam voluptates qui tempora molestias in et. Cum architecto hic qui voluptates incidunt suscipit consequatur. Et fuga fugit sed ea repudiandae.

Quaerat quaerat neque unde. Qui consequatur hic molestiae inventore possimus aut. Et itaque occaecati eum autem sed. Amet amet velit ea nihil. Excepturi in voluptatem rerum dolorum corrupti eligendi. Libero sed eveniet illo esse ducimus ea ipsum. Vero praesentium pariatur repellat.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (199) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
DrApeman's picture
DrApeman
98.9
5
kanon's picture
kanon
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
Secyh62's picture
Secyh62
98.9
9
CompBanker's picture
CompBanker
98.9
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”