Jumping from Asset Management to Hedge Fund

BigRed93's picture
Rank: Chimp | 5

I am a equity analyst in the AM division of an EB. I spend most of my time researching and recommending equities for our long/short & long only products. I've enjoyed the people and work, but I'm unsure about upward mobility/comp. Should/How do I get into the radar of more traditional hf headhunters?

Comments (24)

Dec 31, 1969

I know people who have gone from top asset management firms as research associates to hedge funds. There are clearly lots of transferable skills. I know people on the mutual fund side sometimes get upset because they can't short there bad ideas, use derivatives, and have to deal with other regulations.

www.sharpeinvesting.com

Dec 31, 1969

Very good question. I just accepted a job offer to work as a quantitiative fixed income analyst for GSAMs quantitative investment strategies group. In the long-run my goal is to make it into the hedge fund world. Will the fact that I work for GSAM count against me versus candidates with backgrounds in sell-side trading?

Dec 31, 1969

From what I understand, Bwater is entirely institutional investor money and is more of a macro shop.

    • 1
Dec 31, 1969

Bwater isn't a quant shop..

I don't accept sacrifices and I don't make them. ... If ever the pleasure of one has to be bought by the pain of the other, there better be no trade at all. A trade by which one gains and the other loses is a fraud.

    • 1
Dec 31, 1969

Quant macro based on my understanding.

    • 1
Dec 31, 1969

Thanks for the useless comments.

    • 1
Dec 31, 1969

lol

Dec 31, 1969

bump. pretty curious

Dec 31, 1969

Buyside is hard post-mba period, regardless of HF/AM. BS to BS is the easiest but still not a guarantee. IB to BS is better than not IB but still hard. Just gotta be focused and network properly. Lots of people make that jump but a lot try and dont.

Dec 31, 1969

Post MBA, how common is large AM shop ---> HF?

If I eventually want to move to the buy-side (AM/HF/mutual fund) and (hypothetically - this is all 3-4 years away to be honest) don't get a buy-side job out of school, would it be better to return to IB or move to something like ER?

I'm not one of the WSO readers who thinks it's beaten track or die, GS or bust etc, but am curious as to how I should position myself in different scenarios after IB if I want to go to the buy-side. The reason I ask specifically is because I work in IB outside the US and for a number of reasons, may need to go straight from IB ---> US MBA program and may not have the chance to do buyside in between (in any country).

Dec 31, 1969

If I remember from some other threads, you're based in Australia as am I.

I can't comment on the shift from AM to HF specifically, but just locally I rarely come across people with IB backgrounds in AM, which is really the majority of the industry compared to HFs (of which there are few). That's not to say you can't make the transition but an ER background is the more common step.

Post-MBA...and there are others more qualified to answer...my understanding is that buy-side recruitment is largely what you make of it as these roles generally aren't advertised outside of the larger shops. There are a couple of recent threads talking about this.

Dec 31, 1969

Yeah I saw those, thanks for the reply.

You're right, I'm in AU but I'm planning on doing my MBA in (and moving to) the US in a few years - more relevant question about AM vs. HF etc there as you implied.

Dec 31, 1969

I can only speak for my own firm, a large AM shop that sources people almost exclusively from a few MBA programs... almost no one leaves from here for HFs. I'm not sure whether that's because the door is not open, or if ppl are just generally happy with comp/lifestyle/stability of being at a big long-only. Once in a while someone will leave for another long-only (e.g. if an experienced analyst has a chance to be a PM somewhere), and there are ppl who will leave for VC. But otherwise I haven't seen a lot of jumps to HFs. I think it's tough to justify taking that risk unless the economics are really substantially better. Part of this i'm sure is cultural though - we screen for likely hedge fund defectors and those guys generally aren't getting offers...

My 2 cents is it would certainly be possible to jump after 2-4 years, but you're likely going to need to work with a headhunter. Questionable risk/reward so a lot of people just stay.

    • 1
Dec 31, 1969

I'm at a mid-sized AM shop and see the same kind of behavior here post-MBA. Just curious, how do you generally screen for hedge fund defectors?

Dec 31, 1969
Comment