Hi,
It seems likely that I might have an opportunity to start at a pretty large macro fund when I leave college.
I have worked there before, like the people, the job etc. The team I am on is pretty small but are running about a yard.
Obviously it is a risk not going the BB route, getting top training etc, I guess at a HF my job security hinges on the PMs ability, which I am very confident in.
I guess my question is...is this a BIG risk so early in my career. In terms of roundedness I think this job offers so much over and above of working at a BB. Just wanted to gather some thoughts on aspects I may have missed or not thought about enough.
Edit - also, I guess I am also asking...once you are in the hedge fund world as an analyst/ research type role, do you have value in the industry and can stay in the hedge fund space?
Thanks.
Just do it... If the fund/team is stable, it's the best thing you could hope to happen to you.
i'd say that if you're truly interested in having a career in investing, this is a no-brainer
If by pretty large you mean $100m AuM, yes it might be a risk but otherwise i can t see how working in a Research / investing role in a HF straight out of a college is a risk vs going to a BB assuming you want to be an investor and not a broker or some shit
Cheers guys...yeah my heart says its the right thing and I want to do it so I will do.
Not sure on AUM exactly but circa a bil I think judging on position sizing.
You said your team is small but running about $1B, which makes me think you are at one of the large multi-manager platforms.
What are the specifics of your role? Are you going to be the econ research analyst guy whose job it is to crunch numbers and data for the PM? Or are you going to be something like a junior PM or strategist, where you will learn about implementing trades, sizing positions, and managing risk?
I am in BB trading and would have given an arm and a leg to start at the latter position right out of college (believe me I tried). If it's the former, the decision is less clear cut.
Yes you are right, and it is more like the former.
The role is largely research, sourcing, building models. I just trust that as team is lean that role could expand rapidly.
Would this change your view somewhat?
Like I said, it's not as clear-cut. The risk of going into the research role is that you may be pigeonholed and never get experience managing risk (which you'll get in BB trading). But if you think your role could eventually expand to include the latter skill-set, then go for it.
What do you mean by sourcing and building models? Is it an equity team in a macro fund? My decision would change based on that data point. If you want to be an equity PM, you should definitely take this fundamental research job. My previous analysis applies to macro, where risk management is often more highly valued than being the idea guy.
its a no brainer taking this job...the research people who get pigeonbholed are the ones who float at these firms not the ones tied to specific Pms/groups. In this job you will be doing alot of coordinating your PMs requests and getting them done using theinternal resources as opposed to just grinding away charts...you will also get to see how the risk is managed and how your guys run their book unlike most research people at these funds. this is about as good a job as one can have at 22...take it and do whatever you are asked to do.
Agree with above posters. Unless you are still thinking you may want to do PE or something, I'd say starting at a HF in the type of position you described would be a dream job for many coming out of school. Might not be as structured as a BB, but you will learn a ton and have good, transferable skill set within the investment industry.
I'm going to go ahead and play the devil's advocate here. Taking a large well structured analyst program has distinct advantages that shouldn't be ignored, namely the training, developing skills in a structured way, the rite of passage tag, the camaraderie/network with your fellow analysts, etc. It is the "road more traveled by" for a reason. Sure working on the buyside is relatively great for people with some experience, but as a fresh grad it may not lead you to the best destination long term if things don't work out at your HF. If it does work out great, but just understand the risks you're taking.
Iure sed doloribus ducimus atque quasi amet rerum accusamus. Aut recusandae dignissimos est debitis nam repellendus expedita. Vel rerum soluta rem nam qui. Fugit ipsam quia nihil et et ut molestiae.
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...