Hi,
I just graduated from medical school with my MD in May, and I took Level II of the CFA in June. My long term career goal is to get to the buy-side in either a mutual fund or l/s hedge fund. I know biotech is hot right now, so is the best route to break in via sell-side equity research as an associate in the biotech sector? Any other routes? And will completing a 3 year residency with clinical training make me a more attractive candidate than just having the MD?
Thanks
I don’t have any advice to offer, but what made you change your mind on medicine after getting a degree but before completing a residency program?
Yeah, good question. I majored in economics as an undergrad, and my long-term career goal was always to leverage my healthcare background in business-it just was a matter of timing for me. I actually am about to start a 3 year internal medicine residency in the fall, but I am using the summer to evaluate my job prospects. One of the reasons I think it might be worth it to finish the residency is with just an MD I feel as though I don’t have enough knowledge to make a significant contribution to a firm, and atleast if things don’t work out in Wall Street I have a fall back option to practice as a physician if I complete the residency.
Ah, I thought you were against medicine at this point. I would certainly follow through on a residency. At the very least, you’ll have more career options (as you noted)-- and you might find yourself taking some opportunities you didn’t plan for after residency.
“Yeah, good question. I majored in economics as an undergrad, and my long-term career goal was always to leverage my healthcare background in business-it just was a matter of timing for me.”
So you took a 5 year detour to get a medical degree (??).
No, I actually went into medical school thinking I would be a practicing physician, and perhaps get an MBA later to get into health administration but I realized with ObamaCare/other changes that a career in medicine wasn’t that attractive. I still am happy with my decision because I think more doors will be open to me by having an MD than by not having it.
Finish your residency to get the experience and fall back option. Try to finish level 3 around that time. I know of a few managers with MDs, although they don’t necessarily invest only in biotech. Another option would be venture capital. II’m not sure its that difficult of a transition so long as you can demonstrate a knowledge of finance and accounting.
I think assuming that you can use a career as a doctor as your fall back option if you go into finance and it doesnt work out is a bit of a stretch. Not many jobs will look too kindly on someone who switched from one industry to a completely different industry and then back, you will look like you dont know what you want to be doing (or worse if you are fired it will look like you don’t want to be a doctor).
Also I dont know how much 3 years medical experience will do, except a few very specialized positions. You also don’t know what the finance labor market will be like in three years, and alot of places might not want to hire someone who has that much experince and education as a first year analyst (the CFA is a nice boost and might even be enough to land you a job but you will still start at the bottom). After 3 years you might have to do an MBA, bringing it to 5 total etc. etc.
This is all to say that planning on doing something for a few years, just to do something totally different is probably going to bite you in the ass. While an MD is alot of work and it might be tough to feel like you are throwing that away it will get harder to switch careers every year, not easier, so this might be your best shot.
Also why would you want to go through a residency, which from everything I know about it is brutal, just to start at the bottom again somewhere else,
Also have you applied anywhere yet? If you got an offer would you even consider doing a residency?
Yeah I have applied and have had 4-5 phone interviews with firms for sell-side biotech equity research associate positions. Even if I did get an offer I would still consider doing a residency, but I understand your point of the market being completely different in 3 years.
However, I disagree with your opinion in it not being a fallback option. Completing a residency and passing the board certification exam will allow you to get a medical license to practice medicine in any state, and there is projected to be a physician shortage very soon so I am pretty confident that I would be able to work as a physician in case things don’t work out.
From my understanding, there aren’t many MDs in sell side research. Most are on the buyside. This may make you more attractive
Yeah that’s what I’ll do I think, and I’ll take Level III a year after I’m done with it because I won’t have time to study for it during residency, but I think I’ll have time to self-study financial modeling so that I’ll have that box checked when it comes time for interviews. Appreciate the advice
I would recommend diving into Healthcare/Biotech/Pharma I-banking or PE. Probably more on the PE route, but starting in IB would be good too. One of the guys on our board is a Phd in Biotech Engineering and manages a very well known VC firm on the east coast, and I’ve seen quite a few MDs on the PE side. I could pass along some potential names. A firm we do deals with is a boutique in the Northeast that is solely focused on everything touching healthcare and they have a PE business unit and long/short equity hedge fund business unit. Needless to say MDs with a strong finance skillset and experience are a hot commodity.
Going this route would probably be more conducive to your residency goals.
Thanks I sent you a private message