Some notes here for your reference: First, Hedge Fund performance is not benchmarked to an index and aim for absolute return with a high Sharpe ratio. Second, HF's are not compensated on the relative return over a benchmark. Some are, but most employ a high-water mark and/or hurdle-rate for performance fees.
What are your views on the job outlook for both? I believe there is an increasing shift of funds from active public markets to passive and alternative/private market investments Also from a fit perspective would you say a hedge fund role is more suited for introverts/analytically minded? One concern I have with PE is that, to excel to more senior levels, it will be more driven by relationship-building and process management as opposed to raw intellect, analysis and investment mindset
Yeah, traditional fundamental hedge funds are definitely declining in number. Hedge funds as an asset class is shrinking, while PE is growing. Growth of new strategies like index investing and quant investing makes public markets trickier. That being said, there are still some extremely well performing hedge funds and some strategies (like market-neutral investors) are probably not going anywhere for a while. Also, stocks keep going up! IMO, hedge funds is definitely way more suited for introvert types. You can spends lots of time just doing research from your office. PE still requires a ton of interaction and trying to make people like you.
What regions are you interested in hearing about? I've only worked in the US and Canada and I've been most comfortable talking about my own experience, but I'll try to find out from a friend if possible!
@@PeakFrameworks Hey firstly thanks for sharing all your experiences Could you please make video on European countries in just 1 video is also fine (eg. FRANCE, Germany, or may be any other English speaking country in Europe) Great Thanks again!
Possibly. There are of course outliers like Apollo, H&F, Centerbridge, but I'm still tempted to believe the norm is a lot lower based on my experience and talking to peers. I also think people tend to exaggerate their hours a bit.
Peak Frameworks I was there so 70 hours was a light week. I wasn’t on the PE side but interacted with them routinely. They basically never slept always in. This is associates. Partners are more relaxed. There was also a push to lighten the hours. So the hours now vs how it was 10+ years ago has changed
Is getting into financing engineering or quantitative finance great for a career in quantitative trading for someone with no tech background ? What should he or she learn apart from entrance exams, in this case
I think it really depends on the quality of school you go to. If it's truly a quantitative finance program where you're doing some CS, I think you should be fine. Most people I know at quant funds studied pure comp sci in school.
This isn't necessarily that accurate. The generally most coveted HF jobs are single manager shops like the Tiger Cubs and most of them pick off of MF PE associates. Multi-manager hedge funds aren't that desired and most MBAs going into the public side actually prefer to recruit at LOs since multi-managers have short investment windows and can blow up really easily. There's also a selection bias where MM pods that are recruiting are often the bad ones and career risk is huge when you go to a MM HF
Great vid! Do you think these exit opps are similar in the Toronto, Canada? Also, can someone from Canadian IB break the PE or HF in US? I’m an international student studying in Canada and I know it will be harder for int’l because of the visa issue. So I wanna know the comp and exit opps in Canada as well! Also, it would be great to see some videos about high finance(Ib,pe,hf) vs high tech(software engineer) regarding career, salary(growth and ceiling), and more!
Only people at the top Canadian IBs can break into US buyside (GS, MS, and sometimes the other globals). For visas, you should check h1bdata.info to see if the firm you're interested in has sponsored people in the past. It's gotten tougher, but it's still very common. In Toronto, there are PE and HF spots, but way, way, way fewer and they're generally of much lower caliber. For PE, the only >$1B funds are like Onex, Brookfield, and Altas. HFs there are even fewer household names. The competition for the buyside in Toronto is really tough because you also have a bunch of Canadians who are trying to return home from the US. A lot more people decide to stay in IB in Canada as a result.
Peak Frameworks thank you so much! Also, can you compare S&T and IB in Canada? Such as salary growth, exit opps. I tried to find these in WSO and others, but there’s not much info for the Canadian market. I’m a double degree student in UW/WLU, and I’m worried about my career choice now.
Hey, what are my chances of getting into these high finance careers without prior finance experience at 35-36? I plan on getting an MBA and should graduate around that age.
Hi..I'm doing a course called CCRA(by AIWMI) which is based on Credit Analysis. Is good knowledge of Credit Analysis helpful if we plan to break into IB/PE-VC/Hedge Funds?
hey... pls advice me what are the basic attributes one can have to be selected in a private equity firm also how can i join any firm after clearing my Chartered Accountancy exam
Nice video bro.. But do college matter in landing a job at top hedge fund. I am currently persuing engineering from top indian college(IIT BOMBAY).. can i land a job at hedge fund directly after undergraduation.??
Yes, college definitely matters. I don't know the Indian market. It's theoretically possible to do HF directly after school, but you'd need a relevant internship and go to a hedge fund with a history of hiring undergrads
Bruh first strict sebi regulations don't allow hedge funds to operate in india high taxation and stuff so only thing I left with is pms fund management they recruit more ca and commerce oriented people to get into hedge u must get mba from top b schools abroad like Wharton Harvard etc
Some firms invest in both public stocks and private equity, but they are less common. Tiger Global and Dragoneer are examples I think that do both. Generally as an employee you will still have to pick one strategy though.
I think it'd be impossible / very hard right out of school, but after 5-6 years if you're at a top performing fund on either the fundamental or quant side, it is possible. I know people at Millennium, Viking, Melvin, who have all gotten bonuses that big. But very year dependent
Howcome it’s a known fact that HF is a declining industry due to new strategies such as Algorithm trading making trading someone obsolete. Sales and trading at IBs are already becoming significantly less secure as a career and hedge funds have the same fate unfortunately. PE on the other hand isn’t going anywhere for the time being
While the overall industry is probably shrinking, I think the fundamental hedge fund industry as we know it will still exist for a while. They still raise funds from the largest LPs in the world.
Bro your videos are only bangers I just watched 4 in a row
Same
Some notes here for your reference: First, Hedge Fund performance is not benchmarked to an index and aim for absolute return with a high Sharpe ratio. Second, HF's are not compensated on the relative return over a benchmark. Some are, but most employ a high-water mark and/or hurdle-rate for performance fees.
That’s very helpful, thank you!
you wrong! @rui725
Thanks man. You are doing god’s work.
Man I truly love your videos keep it up !
Always work for a fund with a gate clause or lock up period, rookies make this mistake all the time right out of college
Thanks a lot bro for this vid. Learns a lot.
What are your views on the job outlook for both? I believe there is an increasing shift of funds from active public markets to passive and alternative/private market investments
Also from a fit perspective would you say a hedge fund role is more suited for introverts/analytically minded? One concern I have with PE is that, to excel to more senior levels, it will be more driven by relationship-building and process management as opposed to raw intellect, analysis and investment mindset
Yeah, traditional fundamental hedge funds are definitely declining in number. Hedge funds as an asset class is shrinking, while PE is growing. Growth of new strategies like index investing and quant investing makes public markets trickier.
That being said, there are still some extremely well performing hedge funds and some strategies (like market-neutral investors) are probably not going anywhere for a while. Also, stocks keep going up!
IMO, hedge funds is definitely way more suited for introvert types. You can spends lots of time just doing research from your office. PE still requires a ton of interaction and trying to make people like you.
Can you make a video or list of the best HFs that recuit from IB analysts. Also, how is that timeline different from PE
Could you maybe do a video talking about finance jobs outside of the USA?
What regions are you interested in hearing about? I've only worked in the US and Canada and I've been most comfortable talking about my own experience, but I'll try to find out from a friend if possible!
Peak Frameworks I’m from Brazil and hoping to break into IB after college... maybe talk about Latin America?
Pedro Civita Latin America doesn’t have a huge finance market. The top firms all operate in the US and Europe
@@PeakFrameworks Hey firstly thanks for sharing all your experiences
Could you please make video on European countries in just 1 video is also fine (eg. FRANCE, Germany, or may be any other English speaking country in Europe)
Great Thanks again!
@@PeakFrameworks the UK?
3:30 u talking year sallary?
Yup!
Could you please do a video about PE jobs in Canada?
It'd be a short video... Onex, Brookfield, Altas are pretty much the only large-ish caps. Maybe I'll make one down the road! Or a blog post.
Thanks
@@PeakFrameworks what's your thoughts on pension funds in Canada compared to HF and private equity?
@@PeakFrameworks yeah Matt you could make a video covering all of the major buyside comps in Canada. There really isn't much resources on this topic.
I think your topside estimate on hours is low. At least at Apollo associates running the gauntlet - 70 hours is a light week.
Possibly. There are of course outliers like Apollo, H&F, Centerbridge, but I'm still tempted to believe the norm is a lot lower based on my experience and talking to peers. I also think people tend to exaggerate their hours a bit.
Peak Frameworks I was there so 70 hours was a light week. I wasn’t on the PE side but interacted with them routinely. They basically never slept always in. This is associates. Partners are more relaxed.
There was also a push to lighten the hours. So the hours now vs how it was 10+ years ago has changed
Is getting into financing engineering or quantitative finance great for a career in quantitative trading for someone with no tech background ? What should he or she learn apart from entrance exams, in this case
I think it really depends on the quality of school you go to. If it's truly a quantitative finance program where you're doing some CS, I think you should be fine. Most people I know at quant funds studied pure comp sci in school.
@@PeakFrameworks I've a degree in commerce, to be specific while I'm studying for my GRE with an intent to get into fin engineering
This isn't necessarily that accurate. The generally most coveted HF jobs are single manager shops like the Tiger Cubs and most of them pick off of MF PE associates. Multi-manager hedge funds aren't that desired and most MBAs going into the public side actually prefer to recruit at LOs since multi-managers have short investment windows and can blow up really easily. There's also a selection bias where MM pods that are recruiting are often the bad ones and career risk is huge when you go to a MM HF
Great video. ✅
Great vid!
Do you think these exit opps are similar in the Toronto, Canada? Also, can someone from Canadian IB break the PE or HF in US? I’m an international student studying in Canada and I know it will be harder for int’l because of the visa issue. So I wanna know the comp and exit opps in Canada as well!
Also, it would be great to see some videos about high finance(Ib,pe,hf) vs high tech(software engineer) regarding career, salary(growth and ceiling), and more!
Only people at the top Canadian IBs can break into US buyside (GS, MS, and sometimes the other globals). For visas, you should check h1bdata.info to see if the firm you're interested in has sponsored people in the past. It's gotten tougher, but it's still very common.
In Toronto, there are PE and HF spots, but way, way, way fewer and they're generally of much lower caliber. For PE, the only >$1B funds are like Onex, Brookfield, and Altas. HFs there are even fewer household names. The competition for the buyside in Toronto is really tough because you also have a bunch of Canadians who are trying to return home from the US. A lot more people decide to stay in IB in Canada as a result.
Peak Frameworks thank you so much!
Also, can you compare S&T and IB in Canada? Such as salary growth, exit opps. I tried to find these in WSO and others, but there’s not much info for the Canadian market.
I’m a double degree student in UW/WLU, and I’m worried about my career choice now.
I can either go to Vanguard or BCG. Which would you pick??
What role in Vanguard? I assume in BCG it's analyst
I'd probably go BCG, you can just move to Vanguard later if you still want to.
@@sebeksebek82 PE consultant
@@PeakFrameworks thanks! im leaning towards bcg bc their PE team is more interesting than mutual fund
Hey, what are my chances of getting into these high finance careers without prior finance experience at 35-36? I plan on getting an MBA and should graduate around that age.
Going to be tough but still possible. Depends on what mba school and if you can secure internships during that time
@@friedegg3251 Thanks! Will come back here when I get admitted lol
@@thezive5544you don’t have to go to school just enroll in Wall st prep or take the certification course at Wharton
Hi..I'm doing a course called CCRA(by AIWMI) which is based on Credit Analysis.
Is good knowledge of Credit Analysis helpful if we plan to break into IB/PE-VC/Hedge Funds?
I have never heard of this course. I honestly don't think any one course (including the CFA) is going to improve someone's chances very much.
@@PeakFrameworks Thanks..I meant in the knowledge and skill prospect..I mean does the knowledge of Credit Analysis help in IB or PE/VC ?
Hi!..I really wished to know whether the Knowledge of Credit Research helps place us better than other candidates in IB or helps us on the job?
hey... pls advice me what are the basic attributes one can have to be selected in a private equity firm also how can i join any firm after clearing my Chartered Accountancy exam
Investment banking experience, good grades, networking.
Can I get job in investment banking after joining course offered by you...how can I reach you
Nice video bro..
But do college matter in landing a job at top hedge fund.
I am currently persuing engineering from top indian college(IIT BOMBAY)..
can i land a job at hedge fund directly after undergraduation.??
Yes, college definitely matters. I don't know the Indian market. It's theoretically possible to do HF directly after school, but you'd need a relevant internship and go to a hedge fund with a history of hiring undergrads
Bruh first strict sebi regulations don't allow hedge funds to operate in india high taxation and stuff so only thing I left with is pms fund management they recruit more ca and commerce oriented people to get into hedge u must get mba from top b schools abroad like Wharton Harvard etc
And college doesn't matter it's the skill set .
Can I get into PE right out of college?
Yes, have to be top person at top school though (Harvard, Penn, etc.)
Can you do both ? Meaning being a private equity associate and hedge fund manager?
Some firms invest in both public stocks and private equity, but they are less common. Tiger Global and Dragoneer are examples I think that do both. Generally as an employee you will still have to pick one strategy though.
In which Hedgefunds is it possible to make a million out of college or after IB? Is it rather in the fundamental or in the quantative side?
I think it'd be impossible / very hard right out of school, but after 5-6 years if you're at a top performing fund on either the fundamental or quant side, it is possible. I know people at Millennium, Viking, Melvin, who have all gotten bonuses that big. But very year dependent
Holy Shit! Ben Fucking Kim
I really wonder why didn’t you keep up with such a lucrative career in IB and PE 🤔You seem a very field-knowledgeable guy though
lmao i think this is the first time i heard anyone refer to PE as 'the safe route' haha
Howcome it’s a known fact that HF is a declining industry due to new strategies such as Algorithm trading making trading someone obsolete. Sales and trading at IBs are already becoming significantly less secure as a career and hedge funds have the same fate unfortunately. PE on the other hand isn’t going anywhere for the time being
Hedge Funds are dying and can’t get big investors. They feed off of the little guys and will eventually burn out.
While the overall industry is probably shrinking, I think the fundamental hedge fund industry as we know it will still exist for a while. They still raise funds from the largest LPs in the world.