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Hedge Fund Interview Course

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Comments (13)

May 5, 2015 - 8:35am

Seriously?

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
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May 5, 2015 - 11:25am

Again, completely different. Even within BB the compensation scheme can vary dramatically according to a mentor I have who is a VP in Wealth Management. His firm (a major, European headquartered BB) compensates almost entirely on a commission basis whereas other firms are dominantly salary.

Different groups can also vary dramatically in their perception of the business. In this firm the clients are viewed primarily as the individual's ( as in the VP of the wealth management office) client's, whereas at a lot of other firms the clients are viewed primarily as being clients of the institution.

In other words: You're better off talking to people at each individual bank instead of asking generalized questions that assume a false equivalency.

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Jun 6, 2015 - 6:31pm
Bigass_Spider:

Again, completely different. Even within BB the compensation scheme can vary dramatically according to a mentor I have who is a VP in Wealth Management. His firm (a major, European headquartered BB) compensates almost entirely on a commission basis whereas other firms are dominantly salary.

Different groups can also vary dramatically in their perception of the business. In this firm the clients are viewed primarily as the individual's ( as in the VP of the wealth management office) client's, whereas at a lot of other firms the clients are viewed primarily as being clients of the institution.

In other words: You're better off talking to people at each individual bank instead of asking generalized questions that assume a false equivalency.

Thank you for this, I always wondered were these questions originate. For me they are clients of the institution. Oaktree/Wellington always come in comparing apples to oranges from a Custody & Clearing standpoint. But again, its like you said we all have diferent perceptions of the business.

May 6, 2015 - 1:18am

Assuming you're talking about investment management and not other areas such as wealth management, in general the differences are:

Bank pros:
- higher initial comp, i.e. salary (not always true though)
- very stable
- banks have great distribution networks which, if used correctly, can lead to product growth
- brand name is good if you end up switching to another role or industry

Private investment manager pros:
- higher long-term comp. All profits are split among the partners / employees.
- More focus. Investment management is all they do.
- Depending upon the firm, the brand can be excellent if you stay in the industry (e.g. Wellington).
- less BS and bureaucracy
- good access to investment professionals; you'll learn a lot

Bank cons:
- layers of red tape and bureaucracy. Forgot about advancing quickly or doing anything innovative.
- comp tends to level off earlier. Banks are cost focused.
- some banks AM groups don't perform very well. They only exist since the bank has a good distribution network.
- can be boring / low energy

Investment manager cons:
- tons of variability among managers. There is no such thing as a typical manager.
- can be much less stable, especially at smaller managers.

Jun 6, 2015 - 7:15pm

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