LO Equity Investing Career Viability?

Hi all - I am a sell side ER analyst headed to an M7 MBA program this fall that places well into the large long-only equity shops (Fidelity, T Rowe, etc). While transitioning into a LO equity role would unquestionably improve my comp and the work would be intellectually stimulating, I'm concerned about the industry's long-term prospects as the trend toward passive progresses.

 

Since recruitment is highly competitive and would require my full attention come the fall, I would love to hear people's takes on the viability of pursuing a career in long-only equities long-term. Said differently, would you choose to enter the industry post-MBA in your late-20s?

Comments (7)

 
Feb 17, 2021 - 10:37am

It's up for debate. Passive will continue to gain share over active, fees will continue to come down and public equity asset managers will trade at lower multiples. But it's a mature industry with  with high margins that can continue to come down for a long time so you can still ride the gravy train while it lasts right? Active management industry seems to be in the denial phase that they can beat their benchmarks but we all know what's coming for the majority of the industry. I probably wouldn't tell my kids to get into the industry.

Array
 
Feb 19, 2021 - 11:58am

Yeah. More passive investing = dilution of price discovery. Issue is, how do you get the rest of the market to realize it's underpriced if they are all going "la la la I only but the index"

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