So I eventually want to become a portfolio manager (I understand it’s like 12-15 years down the line? I’m entry level) and I heard that the entry point is usually through buy side or sell side research. What are some ways I could get into research? Would they hire me for equity research if I had FP&A experience? or staff accountant experience? Basically I’m asking what’s the lowest hanging fruit I can grab to get on the road to becoming a portfolio manager.
I have a bachelor’s in economics, associate’s in accounting and experience doing content review, customer service/cashier work and operations. so nothing directly relevant. but I’m applying to junior accountant type roles for now. I get calls back, but I’m horrible at interviews so no job yet.
“Portfolio Manager.” Please elaborate.
from my understanding, it’s this:
“A Portfolio manager (PM) oversees the management of investment portfolios for their clients. Clients include pension funds, banks, hedge funds, wealth management firms, insurance companies, charities, and family offices. The PM is responsible for maintaining the proper asset mix and investment strategy that suits the client’s needs.”
Like somebody on the buy-side. A position that CFA charter is supposed to be good for. I’m not sure what types of portfolio manager there are.
Right, well this is what I’m getting at. You need to think about what it is about the job that appeals to you, why you want to do it. There are many different PMs out there. Equity, fixed income, model portfolios, etc. etc. endlessly. Having a sense of what kind of PM you want to be is enormously helpful to figuring out your “optimal” entry point, if there is such a thing.
There are many aspects and forces at play in today’s job market for these roles that doesn’t exactly set up a bright line “track” that allows you great certainty in going from A to B to C. But sure, research/analyst roles are essential first steps. FP&A can be an ok background, especially if the analysis calls for substantial digging into financial statements if you get cubbyholed into specific research roles (e.g., small cap value industrials). But researchers or analysts can be called upon to do a wide range of things; for example, capital markets or economic analysis on an asset allocation or macro fund, in which case FP&A analysis probably has zero value to the hiring manager.
In the long run, even getting a research or analysis role does not guarantee one the track to PM. Many analysts are doomed to stay in those positions for their entire careers, which might be ok for some that never aspire to be PMs. What separates the portfolio manager from the analyst pack are three main skills: Leadership, political, and administrative process skills. Those are things that must be practiced and demonstrated over a very long period of time typically, in addition to being in an organization that will actually reward those things and where there is a business need for those things, before an opportunity opens up to become PM. Usually, it also helps if somebody gets fired first.
Blockquote Right, well this is what I’m getting at. You need to think about what it is about the job that appeals to you, why you want to do it. There are many different PMs out there. Equity, fixed income, model portfolios, etc. etc. endlessly. Having a sense of what kind of PM you want to be is enormously helpful to figuring out your “optimal” entry point, if there is such a thing. > Blockquote
Well, I’d like to do a position where I do research on securities and which ones my firm should buy using math, economics, statistics, quantitative methods, etc. and I’d like to do something that the CFA is relevant to. I want to (preferrably) work for an institution or a bank rather than let’s say, sprint or sephora. I would like something with an intellectual challenge that isn’t mind numbingly boring and keeps me interested. something that also has upward mobility.
what’s the most entry level type of position I can find that is like this? doesn’t sound like staff accounting or fp&a would help me get into that.
Well, it’s still pretty generic what you’re indicating, but sure, I would look for a research analyst or analyst role on the buy side. Fund management or that sort of thing. Sell side analysts have increasingly diminished credibility, if they ever had it, but perhaps some others could guide you better there. There’s no magic bullet for success, but one thing I can tell you is that, whatever path you take, learn from it quick and if there’s no path you like obvious in 1-2 years, leave immediately. Experiment early and often with roles in your 20’s. Don’t believe the people that tell you jumping around is bad. That’s true in your 30’s and 40’s, but not in your 20’s.
2 Likes