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!!


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Best Response
Oct 23, 2008 - 10:14pm
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.

Oct 24, 2008 - 4:50pm

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.

Oct 29, 2008 - 5:10pm
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.

Nov 22, 2008 - 2:54pm

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