Note: This article was originally posted at Mergers & Inquisitions. You can read the original post here.
Aspiring analysts often tell me that they want to work at a hedge fund one day. The most obvious reason is money.
Starting the next Facebook is way too risky if you want to make a billion dollars, so hedge funds seem like the next best alternative.
And since they’re limited to accredited investors – people with a net worth of at least $1 million or more than $200K of income – you’ve also got that air of exclusivity.
But beyond these points, few people understand the differences between hedge funds and traditional money management – how their investment strategies differ, what it takes to get in, what you do on the job, and what you do afterward.
So let’s dive right in and see whether a billion dollars really is cooler than a million dollars.
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Congratulations! You interviewed like a pro managed to land a nice gig this summer at a top hedge fund or asset management firm. The grass is green again and that means you need to put on your tie and go to work.
Now what the heck do I do?
First, keep in mind the “sell in May and go away” cliché. While there is some evidence that selling in May and buying back in the fall can be good for your portfolio (May-Sep tend to be the weakest months from a seasonality perspective), the cliché is more descriptive of the mood on Wall Street. Warmer weather comes and people start to check out and a general malaise washes over the market. Wall Street in the month of August turns into a ghost town as everyone takes their vacations just before the kids go back to school.
Given the slow times during the summer, it is the perfect time for the self-starting student to learn a lot since PMs and analysts tend to have more time on their hands. It also means it is the perfect time for the slacking intern to prove he’s not the right person for the full-time job to follow. Choose to be the former.
Here are two important things to remember to ensure success this summer:
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Note: This article was originally posted at Mergers & Inquisitions. You can read the original post here.
