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LSE MSc Finance or CFA for Equity Research?

Hi,

This is my first post!

I have been offered a place on the LSE MSc Finance (part time) course which costs 27k but am tempted to start the CFA instead due to the difference in fees. Which would be most beneficial in pursuing a career in Equity Research?

My background: 2.1 in Maths (QMUL 2011). Two years in Asset Management back office. Religiously follow markets. Started trading in January 13 - so far with 70%+ returns and no losses.

Any advice will be much appreciated.

Thank you in advance.
Reply 1
Avatar for poohat
poohat
18
Since your undergrad degree isn't from a prestigious university, the LSE MSc will probably add quite a bit of value to your CV purely because of the LSE brand name. But £27k is a lot of money, so its hard to say.

CFA isn't prestigious since anyone can sign up for it and the exams aren't difficult. However passing CFA level 1 is a good way to demonstrate that you are seriously interested in the field, Since you are in back office, doing CFA level 1 is probably a decent idea, but if you aren't getting interviews now then I doubt it would improve your CV as much as an LSE MSc would (although I might be wrong).

Your 70% trading returns mean very little since they are just luck, and if you overstress them in an interview then it might even be a negative, since it shows naivety. Mention your trading activity since it shows interest, and maybe mention that you have made above market returns just to communicate that you have a basic idea what you are doing, but don't think your returns are anything other than a combination of luck, and a premium for taking on above-market risk (how diversified have you been? what is the beta of your portfolio? what is your sharpe ratio? )

Another possible route into equity research might be to try and do an ACA at a big 4, but whether you would be accepted onto the program is hard to say (and it might be a salary cut compared to your current position).
(edited 10 years ago)
Reply 2
Avatar for sj27
sj27
14
Agree 100% with poohat's post. Most of the equity analysts I know have an accounting background, or industry specialists who got there after some time in industry. Most do have CFAs as well though, but as said it's not a differentiator per se.

Also if you are in an asset management firm currently, talk to people! Talk to HR and to the equity analysts to see what they say.
(edited 10 years ago)

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