Is this move possible? What is the best way to go about this transition without an MBA?
In my view, this transition is only possible if:
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You were incredibly well-connected as a trader and can be a real rainmaker when it comes to bringing in new business to an investment management platform
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You were responsible for fundamental selection of individual securities
Otherwise this is a hard transition with or without an MBA.
AM has essentially three roles (other than sales): research, PM and trading. Depending on what sort of “trading” you are transitioning from, it is possible to transition to a “trading” role in the AM company. It’s not unusual for sell side traders to make this transition. Keep in mind that AM trading is an execution role and is generally subordinate to the PM.
The other possibility (but less common) is to move to a hedge fund or other sort of buy side company that focuses on derivatives or macro strategies. For instance, many former CDS, swaps, or other sorts of traders have moved to hedge funds in recent years. LTCM, Soros, Renaissance, etc. are all closer to “trading” than fundamentals, and the function of PM and traders overlaps. Of course, this sort of job requires some history of making your own proprietary decisions in your old trading job.
Thanks for your thoughts.
How about someone who did say algorithmic equity trading and is now working for a top proprietary trading firm doing marekt making and arbitrage on a variety of spot and futures products? Would that person need to attend a top b-school to make any sort of meaningful transition and rebrand himself? If he does NOT do b-school, what type of exit opportunities would this person have?
Question is still kind of vague. Are you still trying to “rebrand” yourself in AM, or are you open to other fields? Most mid career opportunities will be related to your experience. For instance, I know a guy who was at Getco, but recently moved to a bank that was building up its electronic trading platform. Otherwise, there are other jobs called “trader” but from day-to-day, are very different than what you currently do. None of these value MBA very much.
If you are looking for total career change, maybe it’s better to get an MBA. The path seems unclear though, and probably depends your other attributes.
Yeah, I’m open to other fields. My “ideal” job is fixed income research or product management at a large mutual fund such as pimco, fidelity, wellington, t rowe price, etc. Those funds however recruit at top b-schools, and I’ve found breaking in nearly impossible otherwise. I’m also very open to fixed income or currency derivatives trading at a bulge bracket bank or a macro hedge fund. I guess I’m wondering if i’m unable to get into a top b-school, am I sort of doomed to be confined to the world of prop trading? I’m concerned that my experience won’t translate well into other areas within finance and am thus very worried about career mobility.
This forum is much better than wallstreetoasis.
It’s a difficult transition even with a decent MBA. Has been my experience. Probably was a lot easier pre-2008.
Sure. But at top b-schools I would get interviews, a chance to prove myself. That’s all I’m asking for.
Yes, at top b-schools you would. I did my mba at a FT100 rank (mid tier), coming from a dominantly trading background for several years. I did get some interviews initially for corporate finance positions outside of financial industry, and my last job was in fixed income product management.
However, since losing that job, the few contacts/interviews I’ve had seemed turned off by my trading background. Being a trader yourself, you know damn well that your most profitable trades at times flys in the face of fundamentals. Not saying an average HR recruiter has any clue about this, but I feel like they see trading in a vacuum with minimal transferable skill sets.
If you can, I would get a top MBA, and network like hell throughout the entire process. And by networking, I mean, ‘kissing so much butt’ that it becomes second nature.
I always have trouble doing this, and that is a big reason why I am where I am these days. Having to eat what I kill, and that’s about it.