AMA - Old TSRer - 10 years in finance (banking/fund)

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What hours did you work as an analyst and what hours do you work now ?

About 70 in ER, a bit more in IBD due to weekend work, and now about 50-55. Any weekend work is done from my home office.

Reply 21

gr8wizard10

Original post by johnny.snow

why?

not a good work/life balance, purposeless work

Reply 22

Jdaisdey

Original post by xtrembob

You mentioned moving from ER to IBD, did you start over as an Analyst 1 when changing?

I moved as an associate (I got promoted to associate within 2 years and kept my title. Not sure this is typical or not but I can't see why it wouldn't be the same for everyone - no real need to start as Analyst 1 again given the work is not insanely different.

Original post by xtrembob

Pretty interested in Special situations / event driven, but I never quite get the difference between the two even after hours on google. Can you define both strategies?

Frankly not too different and both are used pretty interchangeably. Any corporate event or expected corporate even usually qualifies as one of the two.

Original post by xtrembob

What is the background of people at your fund? mainly M&A or Rx?

Either M&A or funds from straight out of university. Universities: a mixed bunch of European, US and UK universities. Usually top 5 in each country. But there are people from some less known schools, especially outside UK.

Original post by xtrembob

How do you get to partner in a hedge fund? Recommending investments, office politics?

Not much in it. You work good, you do good. Politics played no part. It's purely meritocratic.

Original post by xtrembob

How many people percentage wise can get to partner once in a hedge fund?

There's no percentage limit. Anyone who is good enough will end up making it. We are actually heavy on the partner side.

Original post by xtrembob

Is networking useful for big banks ? I was told that networking events are just boring from an analyst perspective.

I disagree completely. In my last year at the bank I met a great final year student who had no experience but was super smart and persistent and I helped him through the process. I especially recommend networking with the grad teams at the banks - they are the ultimate gatekeepers but the different teams/desks at the bank can get people into a room for interview as well.

Original post by xtrembob

What was it like joining finance just after the financial crisis? Worried about your return offer post summer internship?

In hindsight it was totally ok. But I was definitely pretty worried for a while. Regarding the post-summer internship offer, JP sent everyone an email guaranteeing the offer, which did soothe away some of the worries.

Original post by xtrembob

Hours in a hedge fund?

Circa 55 but it varies. Sometimes less, sometimes a bit more.

Reply 23

Jdaisdey

Original post by gr8wizard10

props to your grind, i'm a year in IBD and i'm looking for an out.

not the life for me

Fair enough. I think it's an incredible school but of course not for everyone. Good luck.

Reply 24

Jdaisdey

Original post by Terry Tibbs

Were you privately educated?

Yes. But I'm in the minority at the fund. At the bank it was about 50/50 but I can't quite remember as it was rarely ever a thing.

Reply 25

username3612318

do you wish you started in IBD as soon as you graduated instead of ER?

given you did a non-finance degree, do you feel working in ER really helped in growing your financial knowledge or could that have been learned with any role?

why the move from IBD to HF, given the plethora of more 'relevant' exit opps?

for any newbie ug lse'ians, any tips?

is partner the end of the road for you now? do you see yourself opening up your own hedge fund now?

everyone always tells me just earn an amount that will let you live a comfortable life, and you've mentioned you've reached that point. to live a comfortable life in London how much do you think one would have to earn? £100k? £150k?

and are CVs really read by computers or does someone from HR personally look through them?

Reply 26

randyorton

How do you get passed JP's 1st round screening stage?

Reply 27

Jdaisdey

Original post by PEking

do you wish you started in IBD as soon as you graduated instead of ER?

Not necessarily, no. ER gives you good credibility as an analyst and and I have a feeling that on the margin you probably learn more about companies in ER. That said, the move ER > IBD doesn't always happen that seamlessly, so if you'd rather not take risks, I'd go to the IBD route first.

Original post by PEking

given you did a non-finance degree, do you feel working in ER really helped in growing your financial knowledge or could that have been learned with any role?

I already had an idea of how to model and had done a few online modelling courses, but it's definitely helpful to do it day in, day out.

Original post by PEking

why the move from IBD to HF, given the plethora of more 'relevant' exit opps?

What do you mean by more relevant? I think the kind of fund I joined is actually pretty relevant. If you're asking why not Private Equity, it boils down to lifestyle, money and intellectual challenge, which I feel are all better at the fund I joined.

Original post by PEking

for any newbie ug lse'ians, any tips?

If you want to do IBD, get good at modelling while still at university. It'll give you a good leg up.

Original post by PEking

is partner the end of the road for you now? do you see yourself opening up your own hedge fund now?

I have no desire right now to start my own fund. Raising capital isn't particularly easy in Europe these days and I actually really like what I do. I think if I ever leave it will be to manage my own money rather than someone else's.

Original post by PEking

everyone always tells me just earn an amount that will let you live a comfortable life, and you've mentioned you've reached that point. to live a comfortable life in London how much do you think one would have to earn? £100k? £150k?

It totally depends what you mean by comfortable. We may have very different views on this. £100k as a young, unmarried person is pretty nice but not insane. London is a stupidly expensive place. What is it that you'd like to have and solve for? Nice house, excellent holidays, kids at private schools? If that's the goal, £100/150k isn't really going to do it. I think if you want to be in a place where you don't really feel constrained, you're probably looking at £350k+ - which is generally when I started thinking about it less.

Original post by PEking

and are CVs really read by computers or does someone from HR personally look through them?

They are definitely read by people. Junior people in HR look the CVs and pass it on to more senior ones who then pass it on to the businesses. That's why I always say, treat HR very nicely at every step of the way.

Reply 28

username1539513

Original post by gr8wizard10

props to your grind, i'm a year in IBD and i'm looking for an out.

not the life for me

You worked so hard to get in Investment banking, would you not feel it a waste of effort if you left?

Reply 29

randyorton

What was the rough salary in your first year at fund incl bonus?

Reply 30

gr8wizard10

no, the opportunities i'm seeking wouldn't be open without having done banking. so actually the experience and the time here has deffo not been wasted, and hopefully won't be... given i'd need the same skillset for the roles i'm seeking for.

Reply 31

Jdaisdey

Original post by randyorton

What was the rough salary in your first year at fund incl bonus?

I think close to £300k. But salary and bonuses aren’t that important - it’s all about the carry.

Reply 32

DisLexsick

thanks mate for your reply extremely useful
wish you well in the future
hopefully will be at lse in september
if i have any other question is it okay to message you ?

Reply 33

Jdaisdey

If it’s very specific to you, sure. Otherwise here would be ideal so others benefit too.

(edited 5 years ago)

Reply 34

rhaegar448

Can you make partner at a hedge fund or reach similar position by going into S&T? What's the difference between the opportunities you get with IBD vs S&T?

Reply 35

username738914

Original post by rhaegar448

Can you make partner at a hedge fund or reach similar position by going into S&T? What's the difference between the opportunities you get with IBD vs S&T?

yes, but a different type of hedge fund than if yoi started off from equity research or IBD. HFs come in different shapes and sizes and employ different strategies.

starting on an FICC desk would lead decently into global macro investing vs say starting off in ER or IBD would lead more into events driven/special sits/fundamental equity etc

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Reply 36

metrize

advice for applications? what would stand out to you in an application for spring week or soemthing?

Reply 37

Jdaisdey

Original post by gr8wizard10

Original post by Princepieman

This. Also keep in mind equity trading desks are not usually that relevant for fundamental-type hedge funds, unless it’s a risk-taking desk in some sort of internal bank fund. Reason being that as an equities market maker, you don’t really do any real analysis on the companies, but rather just trade price action and around your clients’ positions. That said if you want to become an execution trader at a place like Citadel those desks are fine.