Hedge Fund Internships - Uncommon to get an offer?
So I know that it is uncommon to get an offer to work at a hedge fund straight out of undergrad, so if my goal is to eventually work at a hedge fund and to be a portfolio manager (we can all dream right?) does it make sense to try to get internships at hedge funds (knowing that I probably won't get a full time offer afterwards) or to try to get ibanking internships? If it makes a difference I am a rising sophomore so I know I shouldn't be thinking about full time offers yet, but I guess my main question is, what is the purpose of hedge fund internships if hedge funds almost never hire out of undergrad?
Like you said, internships in HF's don't mean ft offers in HFs. However, internships in banking in normal years are supposed to have a decent likelihood of leading to a FT offer in banking. And we all know that HFs are a normal exit opp of IB analysts.
summer after soph year to get a feel for the industry.
then get a banking internship summer after junior year, and get a FT offer (obv easier said than done).
this will accomplish 2 things: 1 - there aren't many soph internships available, so going into SA recruiting you will have a big leg up having had an internship thats not PWM 2 - you will be able to affirm / change your opinion regarding HFs. 3 - it will make you more competitive to get a HF job after IB if you already had some exposure to the HF industry.
All this said, HFs vary widely based on strategy.
A quant shop will definitely hire an intern for FT. Whereas a distressed debt fund hires more like PE firms do. Equity funds are somewhere in between depending on the firm.
You can also look into equity research and work there for a few years before you transfer into a hedge fund.
I can't say whether it is easier to go from banking to HF or from ER to HF, but I can tell you that your two years spent in ER will most likely prepare you a little better for a hedge fund role than 2 years in IBD.
As a hedge fund analyst or portfolio manager you will end up talking to ER analysts every day, so it would be good to get a few years on the sell-side to understand how it works before you jump to the buyside.
Wow thanks for all of the quick responses guys! So from your responses and other stuff I read, I guess there are several common paths into hedge funds (definitely correct me if I'm wrong): 1. IBD 2. S&T 3. Equity Research 4. Prop Trading
So a few questions: 1. What do hedge funds and banks think about prop trading internships? I don't really want to work in a prop trading firm but would an internship at one of them be useful (I understand there will be differences between shady unheard of prop shops and Jane Street but will any internship in prop trading be useful to getting jobs at hedge funds and banks FT?). 2. Is there any difference between IBD, S&T, and Equity Research in terms of exit opportunities to hedge funds?
Do hedge funds do summer internships? (Originally Posted: 02/19/2007)
It seems like everywhere I go on campus, all the recruiting, talk and hype seems to be by and for the investment banks. So, while Im really more intrested in a HF, they don't seem to actively recruit or advertise. Whats the best way to go about finding them?
Of all funds out there, Citadel is most active in advertising their summer spots.
yeah, it can be tough to find summer internships at most top hedge funds.
there is an exception, however. PNC is launching a $10,000 long/short fund that will focus on emerging markets. i actually know someone there - PM me for contact info.
isnt that ridiculously small...
Maybe he talks in millions.
No he is just unsuccessfully trying to make fun of them.... And yes, hedge funds do actively recruit for and advertise their summer internships at the top B-schools...
1) Try HF websites. The bulk of them are minimalist and uninformative (or simply nonexistent), but the large ones usually advertise internships if they have them (Citadel, D.E. Shaw, Bridgewater, etc)
2) Try a headhunter. This is probably much for useful for full-time positions, but some HFs do all their recruiting through one.
those two hire summer interns ..
Hedge Fund Internship - Post please? (Originally Posted: 11/07/2007)
Can someone please post the hedge fund internship here that was posted on doostang today. Im not a member of the hedge fund group so I cant see it. Thanks.
heres the link to it
http://www.doostang.com/Group/JobPage.aspx?jid=24742&SearchId=ccca4f5c-…
Hedge Fund Internships - New York HF over the summer? (Originally Posted: 11/19/2012)
Does anyone know hedge funds in New York that take interns over the summer as sophomores? I'm not talking about the elite funds like Paulson, but other less well-known funds.
Lumina Investments. Ha.
SMB Capital - It's a prop desk, but they will give you an unpaid internship.
Hedge Fund Internships - List of HF? (Originally Posted: 02/11/2010)
Hey guys, new here. I was wondering if anyone had a list of hedge funds that hire interns, or since that's probably impossible to get, just a list of hedge funds in the NY and CT region? I'm a student and don't have access to Capital IQ, so I'd greatly appreciate any help I could get. I'm trying to land an internship at a hedge fund this summer. Thanks for all the help.
Best
Unfortunately, not many but that isn't to say that they don't
I know Sankaty Advisors does, but they're in Boston I think.
Hedge fund internship - After sophmore year (Originally Posted: 09/18/2007)
I have some opportunities to work as at a hedge fund operations group the summer after my sophomore year. I understand the task is mostly getting information and settling trades, but would the experience be beneficial if plan to get into investment banking (corporate finance) after college? Or would it be better to find a boutique internship instead?
Of course look at all of your options. Most people I've talked to have had either botique bank experience or hedge fund experience. Both are good. Figure out which one would allow you to learn the most.
I'm really looking for something like this as well. I'm a sophomore interested in going into investment banking. Do you have any advice for me as to how to get an internship like the one you are considering?
Types of internships in HF (Originally Posted: 06/01/2010)
Hey y'all,
I have got a question regarding internship positions. What types of internships are offered, generally, in hedge funds? Additionally, when someone knows a website with this info, let me know.
Greets.
so many different things. its not really structured, from what i know. you just got to call and ask if theyre taking interns.
Above is totally right. Everyone I have spoken to has said that you just have to take the initiative and call the HF up. They are really secretive and recruit via word of mouth. Good luck !
Most of the internships available are in operations or trader assistants. Most funds don't have the capacity for FO internships.
I would check out the biggest funds (by AUM) for formalized intern programs.
Connections for HF internship (Originally Posted: 01/06/2013)
Hi. I'm currently a 2nd-year student at University of Chicago, majoring in econ and minoring in stats. My dad's friend has a friend who has a lead role in a hedge fund in CT. From what I've heard, though, people aren't seriously considered for hedge fund work unless they've worked in IBD or trading (or occasionally mgmt consulting) for at least a couple years and also excelled in their work. My dad's friend told me that I won't be considered for an internship until the summer after my 3rd year for an internship. Even if I'm technically eligible for applying to the internship, would I have to be damn exceptional to be taken in? How could I use my dad's friend's connection to my advantage? I'm a good but not spectacular student with decent work experience (PWM stuff) and will also take some classes at Booth business school in the academic terms to come.
People do land these roles right out of undergrad, though it's hard. The only thing your dad's connection can do is get you the interview. Nobody will risk having you manage or assist with managing large amounts of money if they're not happy with the interview, not even your dad's best friend.
intern at a HF? (Originally Posted: 04/25/2007)
hey, i'm first year PhD at an ivy (don't need to say where), and just figured out my advisor doesn't need me for the summer...so i was wondering if even that late there were any opportunities for internships with hedge funds etc...(i'm doing mathematical finance/financial engineering...I was undergrad at a US top5)..anybody has any suggestions?...
Contact alumni, use profs to ask for contacts. Its pretty late, so you might go for small places locally.
Most hedge funds recruit all season round depending on their needs. You might want to to try Bridgewater and D.E. Shaw to start.
i didn't know HF did internships... do they have internships for undergrad?
What Ivy even has a PhD in mathematical finance/financial engineering? Princeton through their operations research department (whatever they call it) is all I can think of.
Columbia's FE program in the Engineering School
The M in MSFE stands for Master's (not PhD)
a PhD and you want to intern, talk about low standards
it's not low standards...interning is a way of acqurining new experience, knowledge etc that cannot be taught in a classroom...what's the point of knowing in theory how to calibrate a LIBOR model if you haven't actually done the calibration yourself???
Internships at Hedge Funds (Originally Posted: 01/12/2007)
Anyone know of any hedge funds that give internship opps?
You'll never see that mass marketed to the public. My advice, just start emailing and calling to find out.
thats what I thought/have been doing. thanks for the advice
what are the top hedge funds to get internships with?
is there a website that lists some of them based on geographic region.. im having a hard time finding their contact info
There are 100's of hedge funds that are located throughout the United States. The best funds will probably not publish any of their numbers.
You have to understand that Hedge Funds are not like banks. There is no "top 10 HF's to work for", or annual return information that is published. You will rarely find anything out there except pooling information and resources together to get the bigger picture.
www.hedgefund.net and hfforum.com are good places to start to research funds and get names that way and possibly information. Also, Trader Magazine has some information available from time to time.
You guys have to understand that the reason they're so exclusive is b/c they are just as selective with their personnel as they are with their investors.
how difficult is it to obtain a hedge fund internship for an undergraduate?
Fact of the matter is, any hedge fund that's doing very, very well doesn't want to invite temporary employees in the door to see what's going on.
Citadel is a notable exception, though I don't know how well they're doing these days. Check out the Wikipedia entry for more info:
http://en.wikipedia.org/wiki/Citadel_Investment_Group
I've emailed a few, they said they are accepting applications but it's not advertised
Look into the culture of funds too. For example, certain funds have reputations for being revolving doors where people get fired and/or leave every day...
Not the kind of place I want to work...
Citadel and Susquehanna
anyone knows anything about their internships?
HF internship (Originally Posted: 03/29/2012)
Im a 2nd year student in nyc. Is there any good way to find startup hedge funds that might be looking for a summer/fall intern? any help is greatly appreciated.
Network, network and network.
cold-call, if you call 400 funds, I bet 10 are willing to take you on (paid/unpaid).
cheers
I'd cold-email all the funds first with your resume/cover letter, and then follow-up a week later by phone call if they don't reply (probably none of them will off the bat).
Great idea.
Keep up with HFMWeek website for HF startups.
Use Barclay Hedge or some other HF directory to find small hedge funds. A good target might be 5m-50m AUM.
Albourne Village is another great resource for HF internships/jobs.
There are also some linkedin groups for startup hedge funds/family offices.
The below article should be a good start. At least you are in the best city to follow-up your dreams!
New York City retains crown as Hedge Fund Hub of the World; Top 100 oversee $350 Billion http://www.hedgetracker.com/article/New-York-City-retains-crown-as-Hedg…
I think networking is the best approach. Hedge funds receive thousands of internship emails. I would also focus on non-summer opportunities, since summer is the most competitive. Aim for a relevant finance internship this summer, manage a mock portfolio and join your school's investment fund club. If you do apply for summer positions, emphasize how you are willing to work through the Fall, which will differentiate you from other interns that don't go to NYC schools.
Internship at Hedge Fund (Originally Posted: 02/15/2011)
I am 25 years old and hungry for advancement in my life. I graduated Farleigh Dickinson University with Bachelor's Degree in Hospitality Management in 2007 and currently working as the Director of F&B for two hotels in central Jersey. I have been a mid-level manager in the hospitality industry since I was 18.
I got sucked into this career because I kept getting better and better financial offers and I refused to give up working FT while I was going to school FT. By the time I graduated I was making a solid salary and had bought a house. I now have moved and am renting the house out.
I feel I have mastered the career I am in and want to pursue a career involved with my true passion- investing. I'm an avid investor who has been investing in stocks, options, and real estate throughout the past 8 years.
Can someone give me some advice about what I should do to switch careers into the hedge fund or investment banking industry? I am willing to take a pay cut for the experience so entry-level jobs or internships would be a great start, but I’m not sure if I would be qualified for even that.
Anyone’s help would be greatly appreciated!!
Erick
Maybe you could reach out to some real-estate investment groups-many of these groups own and operate hotel/lodging/resort-type properties, and you could sell your existing experience as relevant.
Thanks for the advice. Does anyone else have any suggestions for specific real-estate investment groups that may consider me?
Your situation is almost identical as mine. I was in real estate finance for 6 years right out of college. Long story short I knew I wanted to do something else in finance and had to make a jump. I decided I wanted to get in ibanking, M&A specifically. I read practically everything I could find, books, sites like m&i, watched every movie about banking, ECG until I practically felt like I was in the business.
I crafted my story of why I wanted to make the change, spent hours perfecting my resume, and applied to a place/position that was a good transition of my current skills but a foot in the door to m&A.
I just landed an offer this weeks as an associate with MM "boutique". Go after it man, good luck.
hey.. congrats my friend! and thanks for the good luck.. I have been doing the same thing as far as reading books go.. I have pretty good experience managing my own portfolio. While I know the feeling of watching my winning picks run up, I also know what it feels like to really take it on the chin when the market doesn't do what you wanted it to.
Books can be read and degrees could be gotten by anyone, but I feel you cant match the kind of experience that trading the securities (with your own hard money) gives. I really feel I have what it takes to excel in this industry but locating my starting point is where I am having trouble.
I have sent my resume with cover letters to several firms already but have not even gotten one response yet. I too, spent hours perfecting my story, yet as my mind races with valuable information there is only so much I can include in a short cover letter. I'm not sure if my cover letters get across my story and objective with enough strength to get a firm interested in me. Would you mind reading one of my cover letters and providing some feedback?
From what I understand, talking about/showing the details and trade history of your personal account is a huge plus and in some cases required. I would highly reccomned giving a brief outline of that in a cover letter or however else it can be brought up..
Hedge fund internship help? (Originally Posted: 07/16/2009)
My school is part of an online database for internships (mostly IVY leagues and a few other regional target schools). I applied for a "Primary Research Intern" position at a HF about 3 weeks ago. I figured that they had read my resume and tossed me in the no pile since I never heard back from them. Well... I got an email from them yesterday scheduling a phone interview for tomorrow.
I'll be entirely candid. I don't know too much about hedge funds. I know much much more regarding investment banking which is what I was shooting for upon graduation. But this seems like an amazing internship opportunity should I get it and right now I'm trying to bust my ass and learn as much relevant information as I can before tomorrow.
The interview is for what I'm guessing is a smaller hedge fund. I can't find any information about it online, no website, no articles. The only thing I found was the 13f-hr filing with the SEC which doesn't exactly give much information. This internship is also conducted online instead of at a physical location (they're based in NY/Vegas and I'm in LA). And since it's been three weeks since I applied for the position I cant even review the actual posting since it has since been removed from the site.
I guess my main question is what kind of questions should I expect to be asked? What level of knowledge/experience do you think they will expect me to have? What topics/material should I try to review/teach myself before tomorrow?
Any advice would be greatly appreciated. Thank you in advance.
x
They basically send you the work/projects via email, you complete them and then email them back. You still sit in on conference calls etc.
Did another internship through the same database that was "online" for a boutique investment bank. Found it very rewarding, learned a lot. Hope that dissolves some of the skepticism of the internship being conducted over the web.
They may not expect you to know a whole lot about the industry.
Just make sure you've got the basics from your finance classes down. If you've taken an investments class, that may help, too. Chances are, they'll be expecting you to do the bitchwork research their research analysts may not have much time to do.
That's my take, given the provided info.
:-)
Hedge funds are typically pretty secretive for a reason I don't understand, but even Tiger doesn't have a website so that shouldn't alarm you.
Whatever you do, try and have a few research ideas that you think could lead to possible trades. Nothing gets a hedgie more interested in an interview than new trading ideas that they think have merit. I know this is a difficult thing to do if you do not have any experience, but this will be what sets you apart from the dozens of other people they will be seeing.
At the very least, have an investment thesis defined and prepared. they want to see what your thought process is like, not actually whether you sell or buy a stock. they want to see what factors you would investigate and consider. how deep you look into the idea. they do this because they want to know how much you already know and how much you do not, so they can think about how to train you to their own methodology which varies between PMs who often follow different styles.
If you want to troll for old ideas to get you thinking, look up the value investor club and register for the 45 day delayed access. although i definitely do not recommend plagiarizing ideas from that source.
HF Internship Junior Year (Originally Posted: 02/12/2014)
I am currently a Junior and it looks like I have a pretty good shot at landing an unpaid internship at a deep value oriented HF. The fund is a start-up but everyone on their investment management team is a serious player and I expect them to not have much trouble raising capital. I know the odds of converting this into a FT offer are pretty slim. So, how do you guys think this would look on my resume heading into FT recruiting season next year, as opposed to an IB internship or something at a firm people have heard of?
I ultimately want to work at a value oriented HF, but taking any AM or ER job I can get out of undergrad is probably more realistic.
The guys I knew who summered at HFs junior year didn't have a problem getting FT banking interviews. You'll probably be asked why you didn't do banking last summer and why you want to now, but that's not too hard to answer (need those modeling and DD skills)
^ There's little linkage between deep value HF and investment banking - I don't see how he'll get any FT banking interviews when a bunch of other people will be competing with real transaction experience (IB/PE).
But congrats on the offer, I would take that and if there's no room for a FT, than leverage that HF into another HF, duh!
Are you guys retarded. Why the fuck would he be asked "why didn't you do banking... you only went to a hedge fund". The only legitimate question related to this would be "are you actually interested in banking?".
Make sure the backgrounds of the PM(s) are very good. You actually have more career risk being paid well but working under a mediocre PM than being paid little working under a very good PM.
If you want to go work at a HF, then go intern at a HF. Pretty straight forward
Ok kiddo a few things. (1) Raising capital isn't what it seems like. It's an extremely difficult environment to start a new hedge fund, and it's just going to be worse. The survival rate of the first two years is what, 5%? And it decreases as time goes by. I'm not a cash equity guy so I won't pretend that I know anything about stocks. (2) You're only a junior in college. The most important thing is to really find what you love to do. Don't just go with the flow or say I want to do this and that based on what you've heard, read, and seen.
Just be open-minded and work really really hard. Be curious. I have an intern in my office now whose name I crossed off the candidate list after the first round. But the team decision was to hire him so I gave it a shot. He turned out to be a great fit and I offered him a full-time offer already despite that he's only graduating this June. Now he's going through empirical data of certain markets to look for volatility patterns and distributions, among many other tasks. I actually plan to move him to the trading desk by end of this year because his personality just suits, and his analytical and numerical abilities are great. My point is, you never know what you're going to get in your life. You could do really well and really hit it off with those guys and end up staying!
So do not constrain yourself.
Can anyone shed some light about interning at a hedge fund? (Originally Posted: 11/19/2012)
So with a little networking I'm looking at the beginning of an interview process with a top global macro fund (Brevan, Caxton, Tudor, Moore ect) for an internship position this summer, I am currently a Junior. I originally thought this was it, of course I would take the hedge fund offer, kill it and start there full time and just ball out. But recently I have been thinking about whether starting there would really be my best option.
I was hoping that anyone who has gone the hedge fund route could lay out some pros and cons about jumping right into the field as opposed to doing a stint at a bank or some other role before hand. My other question would be how does pay and progression work in the hedge fund world? I know that it must be extremely variable so if anyone could shed some light on how advancement works in terms of actually getting a small book within a large fund that would be fantastic as well.
Finally do buyside execution traders always stay execution traders or is there movement into more strategic roles after they gain some exposure and understanding of the markets?
Thanks!
do these funds even hire straight from undergrad...i dont really see what use you could be to them unless you were doing some sort of research support role.
The fund has taken interns in the past. I'm not sure what capacity I would be performing in because, like you mentioned, what can I reasonably contribute right off the bat.
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