IB Necessary?

All of the following is assuming that I want to take the HF route long term. Is it helpful to take the IB analyst at a BB route to become a HF analyst? I hear that this is the most popular path because it is seen as "paying your dues" and there is useful knowledge gained, but is there any knowledge gained here that's worth the two years, or that you wouldn't already learn at a HF? Or would it be more helpful to grind a little more and get an HF job out of undergrad, perhaps at a smaller HF?

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Comments (14)

Jan 6, 2019

Hahaha where does the perception that it's merely a matter of "[grinding] a little more" to get a HF job out of undergrad come from?

Don't you think that a lot more of these undergrad workaholic monkeys would have just "[grinded] a little more" to attain their dream role opposed to slaving away in the BBIB trenches for an exit opportunity?


    • 2
Jan 6, 2019

Well no shit buddy. Pretty sure it's obvious getting an HF job out of college isn't that easy. Just thought it would be absurd to outline the steps to becoming one, as it's not relevant to the actual question at all.

    • 3
Jan 6, 2019

Yes, it would be absurd to outline the steps in this post.
Yes, the statement "grind a little more and get an HF job out of undergrad" is also absurd.

I'll leave it there "buddy".

Jan 6, 2019

What kind of HF job? People lump it all in together, but there are a lot of different kinds of hedge funds... IB will be the best prep for most fundamental long/short equity, distressed debt, merger arb type funds.
However it would be useless for a relative value fixed income fund, quant fund, etc, and frankly these types of funds are probably much easier to get into out of undergrad, assuming a quantitative background

    • 3
Jan 6, 2019

Yeah assume a L/S, distressed debt, etc. type fund. How is IB helpful in these types of funds?

    • 1
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Jan 6, 2019

IB is helpful because these funds want to hire someone that already knows how to do financial modeling, and has gone through a strict recruiting filter.

    • 2
Jan 14, 2019

What the f? Those 2 are completely different type of funds

Jan 7, 2019

I like how moncheetah has HF as their industry as if they work at a hedge fund now.

Jan 6, 2019

why does that even matter lmao

Jan 14, 2019

May not matter but,
People are just looking down at you

Most Helpful
Jan 13, 2019

It really matters what type of fund man..I work in L/S equity at multi-manager and I'd rather hire out of equity research. People who have modeling experience (I don't need a 3 statement PE type of model, just IS) and know how to talk to company management and ask the appropriate questions to figure out how the model key stock drivers.

If you find banking more interesting, do that. When the time comes, recruit for HF or PE...what ever interests you more. If you have good stock ideas and show passion for the public markets, you'll find your way to the appropriate rolr. Don't stress over it.

    • 5
Jan 6, 2019

Thank you!