Starting career at a small fund
Thought I'd tap into the wisdom of WSO old heads for advice.
Background: Finance student at a semi-target. Decent grades (think GPA 3.4-3.6). Been interested in markets before college, probably why I chose a crappy degree.
The situation: there's a small EM fund (think $100/$200 aum) I've recently gotten a little friendly with. The next best type of fund I would like to work at after EM global macro. They focus on the region I'm interested in, also happen to be born there. Looks like a dream job right now.
The issue: the owner left a couple hints about how inactive things can get, making the job appear boring at times. Then we also talked about the classic risks of boutiques hiring undergrads such as loyalty and competency.
Advantages: This is a great place to start. The people working there are legit, good track record. I can learn a lot from them, don't need much hand-holding. EM is growing, the firm's aum will grow, I will grow with the firm. I can gain EM connections for other stuff. Most importantly, it matches my interests in the investment field.
Disadvantages: The only real disadvantage I see is a possibility of low pay, something which I really don't care about at the moment. Another problem could be a possible acquisition which leads to a lay-off, but then again, it can lead to something better.
So anyways, do you guys have anything you want to add, perhaps more points on disadvantages section?
Would it be a good place to start a career?
How do you think I can convince them that I'll be a good long-term investment?
IMPORTANT NOTE: We have only had a phone conversation, I have not asked for job yet and will have the opportunity to see them this summer.
bump
In your first post, you said that you chose a bad degree. Why is this? Was this degree in finance? Would you choose a different degree?
Thanks
It feels weird reading my old posts lol.
My first degree was in a completely different field, it wasn't bad though. Finance is a terrible degree in my opinion. It just doesn't hold as much importance as it used to.
If I could go again, I'd choose major which is more quanty (econ, stats, maths etc) and a minor like psychology/philosophy.
Reasons: The days of getting into buyside with a history degree are gone. You're taught the finance stuff on the job. FIrms are now looking for people who know how to handle data and make sense of it (whilst being creative).
Nowadays, finance students look like people who didn't know what to do with their lives and went for a fairly easy degree that offers many options. Life goes on eyy.
At targets, this isn't true.
There's levels to this.
final bump
depends on the firm. I think it's weird that a HF says it get boring. Imo, there's always something interesting to do in a fund.
In endless bull market it gets boring.
Something I wanted to bring up. Honestly don't mind doing some research in my spare time. My mind travels a lot and would love to have the resources to look into all types of stuff.
something tells me you should phrase this very carefully...
But it's the crazy out-the-box thinkers that firms should aspire to hire lol.
Lucky my extracurriculars are enough to prove I'm not completely nuts.
You attend a semi-target, decent GPA. Network and go the traditional route. Put a little effort in now will yield better results.
If you were non-target, I'd say go for it. If this is the only offer you are receiving, then by all means.
Wouls it be safe to assume that starting at a small firm is not a good idea in your opinion?
Pay at a small fund is going to dependent on the # of employees and obviously performance. EM funds have been able to put out some stellar numbers over the past few years and its possible this trend will continue as DMs slow down and EMs play catch up. Plus less AUM also means they can be more nimble and avoid liquidity problems - which can be a big issue in "riskier" markets.
If you want to be in an EM fund, it sounds like a great starting place. Do some quick maths for a 200mm firm costing whatever fees with their headcount to find an average pay per head if you are worried about the possibility of low pay (obviously further down the line) and be sure that, since it is small, it is a team you want to work with
Thanks for the input.
Now I just have to convince the team that I'm a long-term player who can add value....somehow.
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