Dear all,
I have a question regarding career progression in hedge fund. Say if a person went straight into HF post 2 years of IB, wouldnt he has a faster career progression than say someone who did 2 years of IB then went into PE for 2 years then HF? Given by the time, the PE person has gone into HF, that post 2 years IB analyst has already done 2 years of HF
Is it always better to be in HF as early as possible?
Thanks.
Lets see....
2 + 0 = 2 years
2 + 2 = 4 years
2
[quote=Not not a boutique]Lets see....
2 + 0 = 2 years
2 + 2 = 4 years
2
[quote=Anacott_CEO][quote=Not not a boutique]Lets see....
2 + 0 = 2 years
2 + 2 = 4 years
2HF ahead of the guy who has been there for two years already?
I think the answer is generally NO. Of course it all depends on the institution, but I think if you wanna be in a particular HF or strategy, there's value in breaking in early and establishing the relationships if you can.
it depends what you want. if you want to go the HF route, obviously the quicker you get in, the better. however, some HFs want more than just the 2yr IB analyst stint. (example: most recent job boards post... 2 years IB + 2 yrs PE/HF)
If you don't go to business school or stay in banking after 2 years then in reality you will go wherever you have the offer, HF or PE......I don't know of many people who had tons of options
It depends on the fund and a lot of other considerations, but I don't think the person with a couple of extra years of PE would necessarily be at a major disadvantage. Over the course of your career, certainly it would be pretty much meaningless. And the PE guy may gain useful skills and insight. The firm I work for takes a private equity approach to the public markets, focusing a lot of time on understanding businesses and looking for buyouts (instead of just trading pieces of paper otherwise known as stocks), so a PE background would be welcome. The guy without PE experience could still do well too. There is no best background for working at a HF.
Career progress or timeline, doesn't matter. The earlier you get into HF, the more polished you'll be for a future in HF...
Completely agree, but OP was unaware of that... that's why he's asking.
The reason it was perhaps not assumed as imediately true is that the intuition can be disproved by counter-example in other, parrellel subsectors: IB takes you further than starting in Corp Dev/Corp Fin, successful entrepreneurial experience takes you furthers than starting in VC, etc.
Well put
PE for 2 years vs. Direct to HF (Originally Posted: 02/17/2015)
Hey guys, I'm starting as a BB analyst in IB this year and know that I want to go to a fundamental equity hedge fund after my stint in banking. However, I've heard that HF jobs are really hard to get after just 2 years in banking without buyside experience. Is there benefit to doing 2 years of PE before hopping to a hedge fund and do you guys have any advice on whether it would be better to do PE first or simply try to break in straight after banking?
If you want to do pure fundamental long short equity, direct to HF would be my suggestion. If you are interested in special situations, distressed...you will have an easier time landing a role after PE stint (IMO).
If you want to do HF, you might as well go straight for it with the aim to move after 2 years in banking. At some funds, you will be at the same level of seniority as guys who have done 2 years banking + 2 years PE (i.e. there is little benefit to doing an extra 2 years in PE)
And if you don't manage to get a HF job, you can always still go to PE because that window tends to stay open longer and PE recruiting is higher probability just by virtue of there being more seats to go around. Then you do 2 years in PE and go to HF - it's a fairly common route.
What I've seen is that its much harder to get into an HF out of banking than to go PE -> HF. However, that extra 2 years in PE would be two years of your life spent on something that wasn't your end goal, so that's something to consider.
Expedita nulla officiis molestiae sed ut at. Rerum laudantium qui vitae. Voluptate quo eveniet impedit esse deserunt in aut enim.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...