Transitioning from Asset Management to Hedge Funds: Challenges and Opportunities for PM and Analyst Talent Looking to Make the Move
I have been wanting to write this piece for a while, after substantial demand from many of the PM and Analyst candidates in the Asset Management space that we regularly speak with and who ask for our advice on the subject.
Everything I have written is based on the strong relationships we have with a number of leading hedge funds, as well as the common themes we have observed with any candidates we have represented from the asset management space that have gone on to have successful interview processes (and even get hired) by our HF clients.
Transitioning from asset management to hedge funds is a significant career move, which can come with a number of challenges and high hurdles. While hedge funds traditionally prefer candidates from the sell-side or their own ranks, with the right approach and background, it is very much possible to make the transition. However, a large part of your success will also depend on the types of strategies you are running or involved with.
Yet, it is vital to acknowledge that hedge funds are not for everyone. The demands are high, hours are long, and the competition is fierce. However, for those with a lot of confidence, a very clear investment framework, and a strong track record (as a PM or Analyst), the potential rewards can be substantial.
In this post, we examine the reasons behind HF hiring preferences and provide key strategies for success, from early career moves to emphasizing risk management and framework, to presenting strong trade ideas.
While this piece is a broad introduction to the topic and targeted at both PMs and Analysts working within asset management (and not on the sell-side or already at a HF), I will also be writing some future pieces that are more specifically targeted to analysts or PMs looking to make the move and will potentially even break this down into specific asset classes/strategies in order to add as much value as possible.
If anyone has suggestions or wants to flag anything that I might have missed, I am always open to feedback and can incorporate any thoughts into future posts that I write. Enjoy!
