Hi all, I am considering taking the schedule I CFA exam in June 2010 and wanted to get some input as to if this is the right step for me. I have been working at an entertainment company in corporate finance as a credit risk/ collection manager for about 2 years. I am interested in switching careers to investment management, particularly hedge funds and private equity. I know that both industries are extremely competitive and require experience that are not related to mine; however, I feel that passing the schedule I CFA will give me the competitive edge for an entry level analyst position. I have networked and have been giving mixed answers, but the general consensus is that ‘it can’t hurt’. I am committing around $3K (test and classes) and 6 months of my time for this exam and want to be sure this is the best option for me based on my situation. My other options are to take the CAIA exam, which is more related to hedge funds but not sure if it is as prestigious as CFA, or to get my MBA. I feel I need at least 2+ more years of work experience before I can apply to a top 25 B-school, so in the meantime, would it be wise to get my CFA first before going for my MBA? Thanks, WC
Go for it. It’s not going to make you a hedge fund manager overnight, but it MIGHT help you land some associate/analyst job, particularly covering the industry that you are currently in. I tend to be pretty cynical about the CFA program in general, but it does seem like more and more employers are listing it as a recommended qualification on their job advertisements. (This might just be my perception, of course).
You wrote: "however, I feel that passing the schedule I CFA will give me the competitive edge for an entry level analyst position. " For private equity, the CFA program really won’t help at all in most cases. I’m sure someone here on this thread will tell you how the CFA program changed their friend of a friend’s life and helped them get into PE, but just passing Level I will not. There’s hardly any curriculum in Levels I or II that is even tangentially related to Levels I or II, and the likelihood that a PE employer will care about it is about 1%. You’re better off spending your time networking and trying to get your foot in the door through your personal contacts. CFA Program might be more helpful on the hedge fund side but it really depends which fund. I say go for it if you have time to kill.