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)!

Hedge Fund Interview Course

  • 814 questions across 165 hedge funds. Crowdsourced from over 500,000 members.
  • 11 Detailed Sample Pitches and 10+ hours of video.
  • Trusted by over 1,000 aspiring hedge fund professionals just like you.

Comments (5)

Oct 28, 2019 - 3:12pm

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.

Oct 28, 2019 - 8:02pm

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.

Nov 10, 2019 - 8:12am

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.

Start Discussion

Total Avg Compensation

July 2021 Hedge Fund

  • Vice President (18) $520
  • Director/MD (10) $359
  • NA (4) $325
  • Portfolio Manager (7) $297
  • Manager (4) $282
  • 3rd+ Year Associate (18) $269
  • 2nd Year Associate (26) $251
  • Engineer/Quant (51) $237
  • 1st Year Associate (63) $188
  • Analysts (184) $168
  • Intern/Summer Associate (15) $125
  • Junior Trader (5) $102
  • Intern/Summer Analyst (208) $82