RIA: Viable career after ER and potential pipeline into AM or HF?

Water Cooler Careers
#1

Hi guys.

I hope to start in Equity Research soon and was looking at a few ways the career itself would branch out after several years of experience. I was looking through asset management in the forums and I came across RIA (Registered Investment Advisory firms). Most of these firms are founded by older guys (40+) who were successful in pwm and built up a client base at a BB. They left the firm and then started their own RIA after signing a non-compete agreement for a couple of years. Most of the clients for the pwm senior at the BB would be willing to follow him.

Do any ER analysts or people looking to make it into HFs and AM firms go work for the RIAs? Is the comp and lifestyle competitive? I’m looking through some of these and they mostly strike me as “boring” mutual funds.

Some of these RIA’s have large AUM and they only have like 2-3 guys working on the investment strategy side. Is this because they don’t really focus on proper strategies and more or less pump everything into index funds. How do these guys operate?

It looks like it might be a valuable career. Any advice or insight into what a career here is like?

#2

You don’t even have an internship and you’ve already planned your exit from ER?

#3

You hope to start…first start and then judge a profession.

ER is an exiciting career opportunity. I wish I could do that.

#4

I see nothing strange. Junior investment bankers do this all the time.

#5

ER is not the same as it used to be. Exits into AM and HF are possible but have always been challenging; with active management fees under increasing scrutiny, it’s going to get harder to find a buyside seat. I think the graph (see link) of spending on aggregate sell-side research says it all. http://online.wsj.com/articles/new-rules-poised-to-reshape-analyst-research-sector-1423514292

#6

Ah crap. That really pisses me off… What’s a good way of entering AM then? Just straight out of college? How the hell do I do that?

#7

Go to Ivy League Business School.

#8

ER is dead

#9

Please don’t say that.

#10

Are you Indian? If you are, Igor can make an introduction. He just did for my friend Atush.

#11

.

#12

Lol you guys. ER is not dead. Shrinking atm–perhaps. It will be around for a long time. That’s what wallstreetoasis says anyways. If it doesn’t go on, then where the hell are HFs and MFs going to recruit knowledgeable candidates from? It will change and people will have to adapt.

At least…that’s what I keep telling myself LOL

#13

Harvard

Wharton

#14

lol you’re crazy man. I’ve got friends at Baruch and NY state schools that get offers in sell-side and buy-side firms. I don’t dispute your wisdom, but I think you’re exaggerrating. Guess I’ll find out for myself.

#15

If you keep laughing so much with all the LOL comments, you won’t be taken seriously in a masculine field like finance my 0.2 cents. Look around you in this forum, people are either depressed or angry , this is how finance should be. If you want to laugh and keep a smile become a plumber.

#16

.

#17

AF makes you tough.

#18

Ah ok. Well thanks for being so frank. I guess I’ll try my luck elsewhere. GL with your career man.

#19

ER is not dead by any means. Anyone who says it is has no idea what they are talking about. Is it shrinking?Yes. Has it been shrinking for many years? Yes. Will it die completely? NO. there are still plenty of companies that have 30 analysts covering them. Is that too much? YES. Will it go to 0? No. Companies will always need research coverage, broker dealers will always need to provide it. And even if the field shrinks in half, it will still exist.

#20

Dude don’t even listen to these two idiots for a single thing regarding anything. They just spam this place at all hours of the day every day and have literally no experience in the field whatsoever.

If there was an ignore feature SamCryBaby and atush would be on everyone’s list.