Hedge Fund Role Post-MBA
Thanks to everyone on these forums I've learned much over the last 6 months or so. I'm happy to give SB's for any advice here! I will be attending a top 5 MBA program starting next year, and my ideal plan is to recruit directly into a hedge fund role. I'm well aware that even at the top programs many of the HF/PE roles are earned by those with IB experience pre-MBA.
With the help of those in the industry, I'd like to make this transition. I'm coming from an economic consulting and retail banking background (think finance for a smaller regional). With the econ gig there was a lot of industry/company research and financial modeling involved. I've also worked on my own time to develop modeling skills through WSP/Macabacus. Outside of work I also try to create investment pitches in 2-5 page write-ups. I'm motivated to make this happen, and am just wondering if anyone has any advice for someone in my situation? Cold email with examples of my work? LinkedIn messaging?
the big multi-managers and long only shops should recruit at your program depending on what top 5 you're referring to. do internships during the year to boost your resume/skillset and start networking with alumni from your school early.
Appreciate the advice Frank Slaughtery. Definitely planning on networking with alumni early on. How do most in the industry feel about investment pitches from interested candidates? Do you think that's looked upon favorably, and will people actually read it/look it over even if a newer/colder connection?
Spend 95% of your efforts on networking, including alumni, and only 5% on campus recruiting.. there are very few advertised openings, and the competition is intense.
By all means cold email, reach out on linkedin, and yes, attach a write up. Shows youre serious about the search and not just fooling around.
Network aggressively, show why your interested in the markets, have a stock pitch ready, know what’s going on in the economy, and show that you can model
So you're starting in 10 months? Are you still going to be working between now and then? Seems kinda early to already be accepted unless your going to HBS vs 2+2.
I think its possible but will be uphill battle. What is your risk profile for this plan not working out? If you don't get a good HF job and and thus miss to opportunity to use bschool as an opportunity to parlay into a blue chip role in say ibanking at a top bb how much will you regret your decision? The less risky move is just going all in banking to get the best firm on the resume for the summer and then trying to leverage that into a full time offer.
Bschool is kinda a one shot chance at really making material career shifts (two if you include the internship) and if your risk the easier but prestigious path (IB) you might not end up with what you want (HF) and be regretful.
Since you have a ton of runway, I'd be networking as much as possible now. Maybe even try to get an pre-school internship and quit your job early.
ke18sb yes, I'll continue working between now and then. Thanks for all of the feedback. I'd say my risk tolerance is pretty high, but I do also plan on recruiting for top BB IB associate positions. I figure the networking is fairly similar, as opposed to trying to pursue a HF/PE role and an MBB role at the same time. Would you agree? Also, are you saying try to go for a prestigious BB name for the summer, and then leverage that into a HF position? Or just a full time offer at that same BB?
Networking for a HF and for BB IB could not be more different.
BB IB is much more social, transactional, traditional corporate finance. HF requires deep research on business models / investment ideas, and understanding of markets.
You should think long and hard about taking a shot at HF. It will require a ton of time and is a uphill battle.
I will say this - its much easier to say you have a high risk profile vs. actually living it. Wiffing on a HF, or even landing at a small unknown one, while seeing your peers land BBs is emotionally brutal. Potentially graduating without a job when you just were a top a top tier school is brutal, mentally. More so when you didn't have a target type background to begin with and this was your career resent moment. I know some people that have swung that bat and made it to a good buyside role. I know others, with way better pre-mba backgrounds than you, that swung and missed and then kinda floundered for a while before getting a job that was not nearly at the level than they could have, which has career long implications. This isn't to say don't risk it but all I'm saying is its potentially way more mentally draining and emotionally difficult than you think.
The nice thing about BB summer associate positions, is your just doing that first semester full ham. Its all consuming. Given your background, ie no ib or something comparable, this seems like the smart play. You can try to do a buyside internship during the school year or something. Also, in all likelihood if you get a good BB job you might be able to leverage that into a buyside job eventually - possibly at greater odds than just right out of bschool.
One thing I have learned over time is prestige matters a ton. Even if you end up at a small ass hedge fund, that doesn't mean you'll be able to transition to a larger one. They will want the pedigree. All buyside roles are not created equal. Akin to landing a small regional IB roles doesn't mean you can transition to a BB. Are there exceptions, sure, but this is the rule.
Foxridge is correct in that you will need to spend a lot of time on pitches, etc. That said, its not some meritocracy where the best pitch wins. You still need the back ground that you don't have.
Another note, you really limit your optionality career wise for a HF, especially a rinky dink one. So thats another thing to think about.
Banking recruiting is both easy and hard. Easy in that you should be able to land a good gig with absolute certainty if you do it right. Hard in that it requires and endless amount of networking (2nd years are the initial gate keepers) and going to tons of stupid events. If you commit to banking you need to go all in and won't have time for HF recruiting. Last thing you want to do is half ass banking and not end up with anything. You can and should network after, if you go this route but you needed to be committed initially.
Went through the process myself:
Participate in stock pitches and if u do well you’ll be invited for interviews.
Make maybe two good pitches on your own with full models in different industries/growth stories, a full deck, and an one pager. Bring those ideas to the interviews and talk about them.
Have your pitches reviewed by 2nd years who are going into the industry though.
Once you have a good summer internship, you can re-recruit for a more prestigious HF.
HF isn’t that difficult if you work hard and follow this through in the first 3-6 months of your mba. Very work driven recruiting process vs soft skills in BB vs pre-mba experience/prestige driven PE.
I would also add that most people have only 1 or 2 go-to stocks that they pitch for every interview. But if you are casting a wide net, you need to know your audience and cater to them. Pitching something that you think will beat the upcoming quarter won't work for a fund that is more focused on finding long-term compounders. Pitching something that is value won't work for a fund that is growth. And on and on. I've found that most fund managers can agree on what makes a good business, but very few can agree on what makes a good stock.
Have someone you trust in the industry or with buyside experience spend even just 5-10min reviewing your pitches and provide honest feedback before you bring them to an interview. In my experience, it is very hard for people without industry experience to think like an investor and come up with a real thesis.
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