“How do I become a Portfolio Manager?” is a question we frequently encounter in our network.
So, we thought we would offer a brief roadmap:
Education: Begin with a degree in a numerical field like Economics, Mathematics, Accounting, Engineering, etc. This foundation can make entering the buy-side or sell-side significantly more accessible, especially early in your career. Additionally, considering an MSc in a similar numerical subject (e.g., quantitative finance) can be even more of a game-changer for securing competitive front-office roles.
Early Exposure to Risk-Taking: Get as close as possible to risk-takers and traders early in your career. Start learning about core skills like portfolio construction, risk management, and trading.
Framework is Key: Develop a clear framework for generating trade ideas and sizing positions. The ability to articulate this framework clearly and with discipline is crucial, especially during interviews with PMs and CIOs.
Trading Psychology: Focus on trading psychology. A large amount of success as a Portfolio Manager is tied to your ability to stay calm, disciplined, and composed, even when facing challenging market moves like the ones we have been seeing this year. Many of the top Portfolio Managers that we know at Hedge Funds even have their own personal trading psychology coach, similar to a top athlete working with a sports psychologist.
Specialize in an Asset Class or Strategy: Focus on mastering a specific asset class or discipline within markets that you enjoy and where you are dedicated to continuous learning and development. Beginning as an analyst or strategist is an ideal gateway to honing your methodology and setting you on the path to a PM role. For example, many (but not all) of the top Macro Portfolio Managers that we know started off as Strategists and many of the top Equity Portfolio Managers that we know started off as Equity Analysts.
Networking with PMs and Recruiters: Engage with industry recruiters to gauge the market pulse and potential openings for Assistant PM roles or any kind of role that will put you on the path to eventually running your own book. Additionally, forge relationships with seasoned PMs for guidance and insights into their career trajectory.
Consider Certifications: Pursuing certifications like the CFA can be helpful but not essential. While not usually a requirement for PM roles, having the CFA can certainly increase your chances of landing good roles earlier in your career. Other qualifications like the ACA can also be useful, especially in roles that require a lot of analysis of company balance sheets, such as Equity Research Analysts.
