Breaking into AM during senior year of college
Hi guys. So I am currently a junior in college looking to enter into the AM industry for full-time after my senior year. I am from a target school with a 3.82 GPA, double majoring in Econ and Com Sci, and pursuing a business certificate. I have invested around $10,000 in the stock market for over a year now, and am working on a relative value arbitrage trading side project using Python.
Here's the catch. I have never interned at a bank or AM firm before because I was always interested in software engineering until this past summer. I will not be interning at a finance firm this summer; instead, I will be interning at a Big 4 tech company as a software engineer. I know it is super difficult to get into the finance industry without a junior internship in the field, so I am looking for any suggestions on what I should do. I am brushing up on valuations and building out my trading side project. Will having these interests cover for the lack of a finance internship?
I am at a LO equities shop as a junior trader, just finished my first year. Just want to say I am not from a target sch, nor have a GPA as high as yours. However, i was reading finance since day 1 at university. Im not saying that having an engineering deg is harder to make your case, but there are tons people who set their minds/hearts making it into AM since day 1, thus doing a degree in finance.
Personally I would say that investing your personal money is impressive as you have some skin in the game, but i guess it is not much different from the other chimp beside you. If you're really interested, talk to people, go for job fairs, pitch your passion.
Right, so the clear advantage you have is that you were doing a finance internship while I was doing a software engineering one. I know for IB, the junior year summer internship is crucial to getting your full time offer. Like it would be near impossible to get into a BB without a junior internship there. I was wondering if it is the same for AM, or do AM firms recruit a lot of new entry level full-time hires who did not intern there the previous summer?
I just went through FT recruitment for AM - I am a Physics student - Semi-Target - Lower GPA. Joining a >300Bn AM this September so what I am saying is based of what I read on WSO combined with what I learnt from recruiting this year.
I am in the UK and as part of my uni programme I did a placement year in Quant Research at a pseudo investment consultant (Well known AM - think BlackRock/SSGA/PIMCO etc - but not in their AM team). So this may have helped my case but I believe you'll be able to leverage you software engineering internship,
I think the key for you is to network hard and talk about your PA trading as well as your python project.
I am not joining a quant team by any means but the interviews I had (from telephone to final round, probably had around 12-15 in total for multiple companies) they were more interested in a similar python project and my views on how I can use my Physics degree in AM.
Companies like Aberdeen AM (not sure how big they are in the US but in the UK they have a solid rep) only recruit graduates out of their summer internship which you can do upon graduation and get a FT offer for the following Jan. So a senior year internship maybe an option for some companies but I know places like BlackRock won't consider you for the internship only FT, where they have very few places (Don't quote me but I've heard as much as 90% of their FT class is recruited from the internship) and in the UK anyway they hired like 1-2 grads per team (again anecdotal). I'd be surprised if they don't but in the UK most banks (even the smaller MMs) and AMs run 'Insight' or 'Networking' events, these are extremely valuable if you can leverage them. The key is to always follow up with whoever you meet. The smaller funds care more about 'Fit' from what I have experienced.
Feel free to PM if you have any questions.
Your advantage over seniors interested in AM is on the quantitative finance and tech finance side of things. It would make sense for you to move from your job into a more technical AM role. If you are interested in traditional AM, you should network extensively since you are at a target school. Smaller firms will still provide good experience and usually have full-time positions if you can't get into the company you want next year.
I might be able to shed some light on this, as I did full-time recruiting for a bunch of asset management firms in my senior year. My case is different from yours, since I worked in investment banking during my junior summer, but the general structure of the recruiting process still applies. I've written about this before, so I'll just copy-paste:
There are a few key differences in your case. Networking may be more important for you, even though you're at a target school, simply because it may be hard for you to clear the initial resume screening with only non-finance work experience. Additionally, you may want to consider applying to quantitive hedge funds/quant trading firms such as Two Sigma, D. E. Shaw, Jane Street, etc. simply on account of your background. They may be more amenable to your work experiences than traditional asset management firms, and it'd also be easier to craft the story you tell during your interviews.
Thanks for the detailed response! I was looking into some quant firms and I see that they mostly hire PhDs in Math and Computer Science for quantitative analyst positions. Do you happen to know if they also look for more traditional investment analysts (non-quant)?
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