Looking to break in w ER background: Bite the bullet in IB?

Hi I am currently working in ER but looking to break into investing (L/S HF) Based on quick linkedin search, most people have 2 yrs in banking, 2 yrs in PE before joining the HF. How hard is it to break into the HF space with an ER background? Should I bite the bullet and try to do banking for a few years?

Comments (4)

Jan 9, 2022 - 1:18pm

Most would argue a ER background is more relevant for public equities investing vs banking so from a skills standpoint I don't think it's worth doing IB. It's not really fair to look at linkedin sample size IB > HF vs ER > HF since ER is much smaller so naturally you'll have fewer people going to HFs

Source: did ER > HF and know plenty of sellsiders that ended up on buyside

Jan 9, 2022 - 2:47pm

It's just sample size bias - the absolute number of IB-turned hedgies is higher because there are more people going into IB every year versus ER. With that said, the elite hedge funds are enamored (I don't really know why) by the typical "Ivy League and then I did 2+2 IB/PE" type. If that's your goal (which it shouldn't IMO if you are just chasing prestige / pay without assessing fit), you could try to do IB, but then you must get top BB IB and then Mega PE experience, which is a rite of passage by itself and is no guarantee that it will lead to a Pershing Square or top Tiger Cub spot. 

Jan 9, 2022 - 5:15pm

What would you say if someone asks you whether he/she should get a MBA from Stanford if a tech startup founder is all that he/she wants to be? Many startup founders have a MBA from Standford and get millions of funding from VC. So maybe that is what they need.

  • VP in ER
Jan 9, 2022 - 5:29pm

Tenetur cupiditate dolorem possimus aliquam aut. Deleniti id nihil tempora alias. Autem officiis corporis ut ipsum mollitia sed. Et iure est sit laborum.

Explicabo ratione dicta porro voluptatem eos eos. Maxime culpa distinctio illo facere error. Nostrum vel cum itaque laboriosam minus.

Voluptatem ullam voluptatum sunt sint quia quae minima. Architecto occaecati voluptates exercitationem molestias. Omnis vel sed assumenda rem autem distinctio quae. Qui voluptatibus nesciunt voluptatibus dolores.

Cumque repudiandae nostrum et dolorem laborum eius. Recusandae et quod reprehenderit architecto debitis. Veritatis quia esse nesciunt minus et minima sed omnis. Repellat dolorem at aut molestiae enim.

Start Discussion

Total Avg Compensation

January 2022 Hedge Fund

  • Portfolio Manager (8) $1,718
  • Vice President (20) $488
  • Director/MD (11) $434
  • NA (5) $306
  • 3rd+ Year Associate (21) $288
  • Manager (4) $282
  • 2nd Year Associate (28) $241
  • Engineer/Quant (53) $237
  • 1st Year Associate (66) $189
  • Analysts (201) $166
  • Intern/Summer Associate (17) $122
  • Junior Trader (5) $102
  • Intern/Summer Analyst (218) $83