Did you do ER because you want a Buyside role?

HFer_wannabe's picture
Rank: Neanderthal | 2,354

My ideal role is a generalist analyst position at a small, deep-value concentrated L/S fund with $1bn+ in AUM. I don't come from the traditional target school + IB, so I'm running into the dilemma of what I should do next. I wanted to do ER out of undergrad b/c I thought it was a more tolerable way to get to a HF, made a ton of contacts, but just couldn't break in and took what I could. I'm now in a better position to start choosing what I want to do with my life and not settling with the scraps.

I'm trying to decide now whether it's still worth it for me to recruit for ER knowing full-well that I'd want to jump to a HF soon after. My concerns about going directly to each are laid out below.

ER: It would be a safe route if it was at a decent shop with a good analyst. Could help provide another good name on the resume, provide some practical experience, and help convey that I love to talk about investing. Worries come from getting stuck on the SS and not being able to convey to HF's that I want to be involved with the actual investing process.

HF: The route to get a gig would be more difficult, but extremely worth it if it's a smaller group of people, decent AUM and a chance to be actively involved with the research process. I absolutely love to research equities and have been actively investing since HS. I could seriously let my passion run free, as homo as that sounds. Worries come from getting into a smaller fund, getting thrown lots of BS work, and/or the fund closing shop with me out left to dry without any BB ER or big-name HF experience on my resume. I know the pain of not having any good experience on your resume and trying to score interviews.

I'm not concerned about the networking involved with getting either role with this post. I just want to know if my worries are actual concerns and whether anyone has been in a similar role and how it's worked out.

Background: Engineering major with short stint at a BB in their PB risk group and now at a BB in a specialized asset valuation group (similar analysis as ER, but just purely asset based and less intensive). Currently taking online advanced accounting college courses, working through TTS and WSP to sharpen modeling skills, and working towards CFA charter. Only been in current role ~half of year and want to stay at least another year to appear from "job hopping".

Comments (16)

May 29, 2014

Interesting. I'm in a similar position as well, although I'm still in my undergrad. But I am doing engineering as well and want to break into a HF later down the road.

So.. in for responses.

May 29, 2014

I wouldn't worry about not being able to convey your desire to be involved in the investment process coming out of ER. It is a pretty common rationale for the move to the buy side.

That being said, go for the HF role if that is ultimately where you want to end up. The ER experience won't be as practical as HF experience for HF.

May 29, 2014

wtf is your title supposed to suggest

"My dear, descended from the apes! Let us hope it is not true, but if it is, let us pray that it will not become generally known."

May 29, 2014
Illuminate:

wtf is your title supposed to suggest

I dont understand what you're not getting

May 29, 2014

.

"My dear, descended from the apes! Let us hope it is not true, but if it is, let us pray that it will not become generally known."

May 29, 2014

"BS" means "buy side" not "bull shit"

May 29, 2014

well that's embarrassing. *deletes post*

"My dear, descended from the apes! Let us hope it is not true, but if it is, let us pray that it will not become generally known."

May 29, 2014

There are very few funds with the profile you are looking for. ER is one step closer to those that would hire you (though deep value guys talk to ER less than others). If you get a good offer, kind of a no brainer.

May 29, 2014

If you have contacts, why not read 10k/Qs etc and come up with stock pitches, long or short and email them to PMs at HFs? A short email saying (this is what I want to do - attached is a trade idea, might be a way to go). Remember that HFs, outside of a lot of the big ones aren't finding it easy to raise capital nowadays. So shops having "decent" AUM aren't as many as previously and have lots of applicants knocking on their doors. What will separate you from the ER and BB IBD guys? You will probably be cheaper, maybe more eager and if you email short little pitches, maybe of some value.

May 30, 2014
Jamoldo:

If you have contacts, why not read 10k/Qs etc and come up with stock pitches, long or short and email them to PMs at HFs? A short email saying (this is what I want to do - attached is a trade idea, might be a way to go). Remember that HFs, outside of a lot of the big ones aren't finding it easy to raise capital nowadays. So shops having "decent" AUM aren't as many as previously and have lots of applicants knocking on their doors. What will separate you from the ER and BB IBD guys? You will probably be cheaper, maybe more eager and if you email short little pitches, maybe of some value.

Yep, something I'm currently doing. That's a good point of trying to show how I can be a cheaper, but more valuable resource. I've been trying to solidify my pitch on why I would make a better candidate vs a person coming from IB/ER. Thanks

May 29, 2014

just get any offers you can get.... then you decide SS vs BS with offers in hand. You may end up being referred to an IB group that feeds into HFs, or maybe you become a PM associate. Who the fuck knows, just be ready and remember one in hand is better than two in the bush...

May 30, 2014
couchy:

just get any offers you can get.... then you decide SS vs BS with offers in hand. You may end up being referred to an IB group that feeds into HFs, or maybe you become a PM associate. Who the fuck knows, just be ready and remember one in hand is better than two in the bush...

So in your opinion it's worth recruiting for both? Didn't wanna give off the impression that I wanted buyside during Sellside interviews and vice versa, but I can just lie/keep my mouth shut.

May 31, 2014

Echoing couchy. Get offers first, and then decide. Obviously you should try to get where you want to be ASAP because it can be easy to get stuck on the sell side, especially if you're not at a top shop. It's certainly worth going through recruiting for both. If you don't get an offer you were expecting, you will have a plan B and still be building relevant skills.

May 31, 2014

I think you know the answer and just want me to repeat it.

Yes. LT goals don't mean anything if you can't hit the ST ones required. Ie, don't count your chickens before they hatch.

May 30, 2014

CHANGE your title... huge miscommunication most people will just gloss over thread.. write buyside out..otherwise it reads as bullshit

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May 30, 2014
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