BB IBD - HF vs. PE

Currently second year at a tier 1 BB in Europe in IBD (generalist, mostly M&A and pieces of ECM/DCM). While PE used to be favored exit opp coming into the job, I feel like this has changed quite a bit after having run processes with them in either side and having seen the kind of lifestyle these guys have (with BB-like hours and regular weekend work). I also hate that all their buying and selling is bound to lengthy M&A processes rather than being able to also act short-term and opportunistic when the environment is supportive/mispriced.

Now trying to get some more background on the HF industry with few questions in particular:
1) Do most HFs still look for candidates with prior buy-side experience, say 2 years in PE?
2) What kind of strategies actually look for someone coming from IB with pure business/finance non-quant education? Would expect smth like fundamental L/S equity, activists to be the way to go
3) Could anyone having moved from BB to HF share a piece on changes to hours? Currently average around 80h with regular Sundays. Adapting to earlier market mornings are no issue, but definitely want to be able to cut hours and reduce the weekends

Sorry for lengthy text - grateful about any kind of input (links to materials/posts also much appreciated)!

 
Most Helpful

Hours are better but stress is much higher. I think about my book 24-7. The markets never stop either, as opposed to deal-related work (i.e., you work really hard and then deal ends and you get a breather). Markets are a constant grind that really wears you down over time. That said, at the (junior) analyst level, you can be more detached because ultimately you are not the person who pulls the trigger.

 

The above sounds about right. I will argue though that PE and deal hours probably grind people down over time too.

Also, OP - in one sense you are asking the right questions to figure out which firms you are most likely to get a job at but in another sense you are asking the totally wrong questions by not starting with the type of investing that you want to be doing.

 

Focus is not purely "where can I get a job at", but rather "what do I have the right skillset for". I find quant strategies super appealing, but knowing that the people working there are from ComputerScience / Math backgrounds I will focus on what can be feasible.

On the question of what kind of investing I want to be doing: I find the possibility to invest opportunistically with shorter holding periods appealing, but major plus for HFs is clearly the possibility to take short directions.

 

Iste facilis nobis velit quis sed saepe placeat. Eius molestiae odio sunt minus doloremque. Tenetur tenetur ipsam sed necessitatibus accusamus fuga est. Consequatur rerum eum perspiciatis quaerat esse vel voluptas. Dolorum aspernatur itaque optio explicabo totam.

Animi dolor doloribus sed placeat perferendis ab. Officia vel rerum commodi eaque cum. Culpa eaque doloremque ea doloribus quia delectus. Laboriosam harum aspernatur et dignissimos perferendis ut. Repellendus nesciunt aut optio molestiae iure cumque quam error. Aut inventore eveniet molestias quia in.

Career Advancement Opportunities

March 2024 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Magnetar Capital 96.8%
  • Citadel Investment Group 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

March 2024 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Citadel Investment Group 94.6%

Professional Growth Opportunities

March 2024 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 97.9%
  • D.E. Shaw 96.9%
  • Citadel Investment Group 95.8%
  • Magnetar Capital 94.8%

Total Avg Compensation

March 2024 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (23) $474
  • Director/MD (12) $423
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (71) $274
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (225) $179
  • Intern/Summer Associate (22) $131
  • Junior Trader (5) $102
  • Intern/Summer Analyst (249) $85
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
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
dosk17's picture
dosk17
98.9
7
DrApeman's picture
DrApeman
98.9
8
CompBanker's picture
CompBanker
98.9
9
kanon's picture
kanon
98.9
10
numi's picture
numi
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...”