Hey everybody, my first post here! I’ll start with a bit about my background. I graduated in 2011 with a B.Comm with a concentration in Finance and a minor in Economics. Like most of my class, I had a hard time finding related employment and spent 7 or 8 months both unemployed and severly underemployed. Near the end of this period I decided I needed to do something to kill the time / improve my profile so I started a MSc Finance through the University of London’s distance learning program. I’m on track to finish my MSc by October 2014.
In January 2012 I was lucky enough to start a new job working for a small mutual fund brokerage. My job consists primarily of reviewing the lineups of funds offered by our providers on a daily basis and staying up to date with market events. I then apply this knowledge to our client’s portfolios and make recommendations to the advisor. If the advisor talks to the client and decides to go ahead with the suggested changes, I then place the orders onto our system.
I was happy to land this job after dealing with the unemloyment for so long, but the retail side of the industry doesn’t really interest me long term and dealing with mutual funds from the outside drives me nuts (trying to analyze them is essentially like trying to analyze a sealed box). I’d love to break into the Equity Research world in a couple of years so I’m hoping to get some advice from you guys.
I’ve just recently registered for the CFA Level I exam in June 2013. I find the material interesting so it’s not a major disappoint if it’s not the miracle pill some people seem to think it is. In a couple of years I will HOPEFULLY be nearly finished both my MSc and be close to becoming a CFA Charterholder. It seems industry specific experience is often looked for in equity researchers, but I find it hard to believe entry level applicants actually have this in most cases.
Any thoughts on what I can do in the next couple of years that I am not already doing?
I don’t think you can really do much to boost your paper credentials at this point. You could probably focus more on intangible areas of your job search, like better cover letters, resume editing, unsolicited phone calls, and stuff like that. If you want another job, don’t wait another two years.
Thanks for your input, my concern with going after the jobs that I’d truly want at this point is that I don’t feel there are enough hours in the day to devote to completing my masters and CFA, while also working 60+ hour weeks. My current job is basically 9-4, or 8-6 during tax season (the office also handles accounting/taxation) which gives me enough time to handle the other things I’m undertaking. I’ve also got a great boss that understands the amount of time these things take and actively seeks out opportunities for me to put what I learn into practice. (ex. a small portfolio has been set up for the sole purpose of me applying what I’ve learned, with the hopes of seeing some positive returns of course. I’m planning to take this very seriously and hopefully have a great demonstration of what I’m capable of for future employers)
A lot of people who have college degrees think they need more college degrees to get into equity research. That’s sort of understandable because your entire life you have been told that you need expensive paper tickets to prove competence.
But fear not! There is a silent resistance, and it’s larger than you would expect*. The longer I do this, the more convinced I am that CFA / MBA / MA / MSF are off target and not necessary. The best way to get into equity research is to know how to do equity research and then network your way into a job. True story. You don’t need industry experience as long as you have the skill already in place and can demonstrate that with a few good pitches. I would guess you could teach youreself at least the basics within a couple of years of dedicated study (it certainly wouldn’t take longer than studying for the CFA).
Right now the industry pretty craptastic because the government keeps screwing around with the economy (by causing never ending recessions, the fiscal cliff, and so on) but it will improve – probably two years from now would be a reasonable time to make a move.
Viva la resistance!
*Source: knowing lots of people that work in the industry who have neither CFA / MBA, including a hedge fund dinner group I went to last night where I was one of two CFAs (noun); there were no MBAs present. There were about 10 of us, and all were either up and comers or HF managers with successful track records.
That’s because there’s no correlation between having multiple degrees and making MONEY for your employer. It’s hard to believe how so many (allegedly smart people) don’t understand that.
Yep. It’s not really their fault though, they’re just following the system and line of thought that has made them successful to date. I think it represents a huge inefficiency in the labor market, both for employers and candidates, but I don’t expect the system to change any time soon.
Seems to me that if you have no evidence on your resume that you know anything about valuation or finance, then something like a CFA or an MBA can help address that point, which is an important one.
However, the idea that more letters is a substitute for more efficient or profitable work is misguided.
Still, if you’re committed, and want to know something about what you are doing, and no one else is willing to hire you, it’s not wrong to try to educate yourself more. Just be aware that it’s only one piece of the larger strategy.