Is the competition for hedge fund seats not that intense in London?

On Linkedin I have been looking at analysts working at top hedge funds in London. Their backgrounds do not look that impressive. A few were hired out of undergraduate and a few worked for a year or two in random finance jobs (not ER or IB) before making the jump. Those that worked in ER did not work for top banks or sell side research companies. 

I have read on this forum that it is very difficult to break into a tiger cub or a top hedge fund but is this difficulty only applicable to recruitment in the US? 

Hedge Fund Interview Course

  • 814 questions across 165 hedge funds. Crowdsourced from over 500,000 members.
  • 11 Detailed Sample Pitches and 10+ hours of video.
  • Trusted by over 1,000 aspiring hedge fund professionals just like you.

Comments (5)

Sep 8, 2021 - 3:31pm

This isn't just the UK.....what you are seeing is reality versus the formulaic approach suggested by many interns and 1st year analysts on WSO. The more you work in finance, the more you will run into people with all sorts of backgrounds.

Just as an example, the smartest hedge fund analyst I ever met came from basically Kansas State University.

Sep 8, 2021 - 6:00pm

I have to +1 this post because seriously it always baffles me this 'perfection' I see and hear on this site. Everyone went to the best schools, everyone is top-bucket, everyone got recruited at a top fund etc when in reality it's very much the opposite. A shit-ton of non-formulaic candidates make it big in 'high-finance' but you'd never believe it if you lived on this site

Most Helpful
  • Associate 1 in IB-M&A
Sep 8, 2021 - 8:57pm

Might get monkeyshit for this but I think OP has a bad take on things. I think there are a few reasons (some structural) why this appears to be the case.
 

London has less big funds in general (discount the platforms please which has haphazard hiring and is not your classic PE -> HF path even in the US. When's the last time you saw a guy do Apollo to Baly?). So unless you really love public markets, there's quite a large amount of inertia for a PE associate to go start looking or even prepare for them when great seats don't open up much. Next point is that heck - alot of these funds do have people with pedigree. Look at Elliott or whatever. On your point about people from undergrad and non Tier 1 sellside ER positions. I haven't worked with anyone directly from undergrad and I don't think this is the norm. But either way I don't see why that's a bad thing from a 'prestige' point of view. If someone who did BX undergrad fits your pedigree criteria then why wouldn't an undergrad from a large multibillion HF do the same? (Again, excluding platforms). And if you're actually on the buyside, you will realise very quickly that GS/MS/JPM don't necessarily have the best research analysts. You prioritise whoever you think is the best analyst on the name or subsector and you'd be surprised how often this doesn't come from GS for example. Best SS analysts that want to become investors can come from anywhere. 

Long story short - I have no idea why you think the quality of HF analysts in London are lower as judging on pedigree is a weak benchmark. But even then there are many with top prior experience in the top shops. 

Sep 10, 2021 - 9:36am

Omnis est iusto nihil nihil voluptate consequatur dolores ratione. Ut alias et accusamus vero aut sapiente eaque cum. Aut et dicta itaque neque. Consequatur veritatis maxime nostrum debitis qui iure quidem exercitationem.

Quia quia voluptatibus perspiciatis voluptatibus ut. Rerum veritatis porro aperiam pariatur est fugit nam. Earum eius eos dolores quisquam. Temporibus esse ea neque earum qui voluptatem earum eos. Et non pariatur optio sed voluptatum provident.

Veniam aspernatur iste et quis error. Rerum illo exercitationem qui ipsum aspernatur eveniet nemo. Eveniet neque nesciunt odit. Eum blanditiis doloribus repellat quis suscipit modi fugit. Ipsam architecto nobis odit nulla. Corrupti enim est minima. Dicta sunt harum ut laborum dolore.

Aut aut distinctio nesciunt deserunt soluta. Numquam sint doloribus fuga. Sint nobis aut et soluta ratione explicabo.

Start Discussion

Total Avg Compensation

September 2021 Hedge Fund

  • Vice President (19) $498
  • Director/MD (10) $359
  • NA (5) $306
  • Portfolio Manager (7) $297
  • Manager (4) $282
  • 3rd+ Year Associate (19) $272
  • 2nd Year Associate (28) $241
  • Engineer/Quant (51) $237
  • 1st Year Associate (64) $187
  • Analysts (188) $168
  • Intern/Summer Associate (15) $125
  • Junior Trader (5) $102
  • Intern/Summer Analyst (211) $82