Switching from credit HF to equity HF

Value892's picture
Rank: Orangutan | 250

Hi all,

I have been working at a credit HF for just over a year, focusing on leveraged loans (private lending, stressed credit and par loans). Before that I was at a BB bank in leveraged finance for 3 years. After working in leveraged products for 4 years, I've come to the realization that I want to move over to the public equity market.

My question is how hard would it be to do this and what would be the best path to start looking. I've come from a good background in my opinion, but it is not suited for equities. Although I'd argue as a credit investor there are pros to being on an equity investing team and the investment style I know of fundamental bottoms up research should transfer well to equities.

Please let me know if you have any valuable insight I should be thinking of.


Comments (6)

Dec 27, 2018

I can't offer much insight, but as someone looking to join a credit HF down the line, can I ask why you want to switch?

Dec 28, 2018

My best guess is he's more interested in some of the public equity names that can be more exciting in terms of upside - I'm in credit but would have no interest in only looking at par loans / private loans, the more stressy stuff tends to be more interesting

Jan 4, 2019

Pretty accurate. I am more interested in equities because of the upside and it is more interesting to me. As an example, my PA is mostly equities and I find researching that side of the cap structure more interesting then the credit side. Also credit documentation is extremely boring to me yet crucial to being a great credit analyst. Additionally, there is imperfect information as a credit investor and much more transparency on the equity side.

It's more a personal preference of mine. Not to say credit is not a great place to be.

    • 1
Jan 4, 2019

Those guys are all blowing out.

I mean it seems simple to me in markets now. Credit = no machines can be smart.
Equity = get judged on factor investing and beta. Have to deal with bullshit caused by machines.

There are very good reasons why a lot of smart people are trying to move in the opposite direction.

    • 1
Jan 4, 2019

Have you seen any success moving the other way? Going to be on the equities side and I, too, see credit as a stronger career path longer term.

Jan 5, 2019