Difference between investment banks and hedge funds?

[skc]

Why? Don't you like the taste of your own blood in your mouth?

It's only happened to me once... when MF Global were close to going under and I am waiting for 90% of my capital to be sent back to my bank account on a Friday. The money appeared at 7:30pm and MF never opened its doors on the Monday.

P.S. I feel sorry for that guy's wife...

 

[Trembling Hand]

Do any of you fella's have hands on experience in the hedge fund scene?

I'm currently completing my finance degree and will eventually be looking to go towards the hedge funds and potential investment banking. I'm looking for admin/data entry/entry level roles (and possibly settlements if no experience is required) in order to get into the door.

Could you share any advice, experiences, anything and everything on investment banks and hedge funds when it comes to a young bloke looking to work?

Thanks all

Daniel

I'm not so sure a Hedge fund has a career progression path like that. Its only interest is in expertise. You would more likely progress through a bank and then make the hop.

You could always try a prop position then once you have proven yourself slip into a bag of fruit and pimp yourself to a hedge fund. (but you wouldn't want to, you would have to stop wearing a T-shirt to work! )

 

[DJG]

I'm not so sure a Hedge fund has a career progression path like that. Its only interest is in expertise. You would more likely progress through a bank and then make the hop.

You could always try a prop position then once you have proven yourself slip into a bag of fruit and pimp yourself to a hedge fund. (but you wouldn't want to, you would have to stop wearing a T-shirt to work! )

Yeah I had a feeling hedge funds only want the professionals (completely understandable of course). Which is why I'd expect to perhaps work for some form of IB entry level, get somewhere near the dealing or portfolio side of things and if I was looking for a change move over to a hedge fund (might like it at the IB). - I don't mind working long hours, especially in something I seriously enjoy!

Just a matter of getting an entry level job in the bank/investment banking side of things. Any recommendations besides:
- Data Entry
- Admin/Clerical type
- Settlements (if I can get in without experience - they require experience these days usually)
- Perhaps customer service or sales consultant?

- Any ideas?

 

[kid hustlr]

"lottery and super lucky" shouldn't be in the same sentence - not in the context of working hard or getting rich from working anyway.



If anyone could give some insight on the above question(s) I posed, that would be great. - Might be of interest to others too.

you are going to be hard pressed to find any type of hedge fund role in Australia.

the IB's have pretty strict/tough grad programs these days so you'd need to be a 'good candidate' - good uni results, maybe some work exp, clearly a smart person etc etc to have a shot at the 'good' IB grad program positions.

EDIT: do a google search theres plenty of info on this stuff out there.

 

[McLovin]

If anyone could give some insight on the above question(s) I posed, that would be great. - Might be of interest to others too.

Hedge funds don't really have that many admin people working for them (they may not have any). All the backoffice stuff is outsourced to custodian companies like State Street. Chances are if you can find one that does have in house back office function then it's really more a fund manager than hedge fund.

In terms of IB, if your grades are good then you might get in on the grad program, otherwise just try and find something on Seek for back or middle office. It's 10x easier to get into IB once you've got something on your resume, just don't expect to be processing super fund redemptions in January and raising capital for BHP by December. Going the back office way is a long slog and most people won't ever get out of it. IB is a bit of a wasteland these days and there will be far more experienced people going for the same jobs you are.

Also, if your grades are OK but not stellar (Credits instead of D/HD), you can check out the Big 4 accounting firms, that's a pretty good pathway to IB, if you work at it.

What's your major/s in?

 

[CanOz]

Part 2 is at http://www.youtube.com/watch?v=IeicBStz8NM

Part 3 doesn't appear to be there though

Thanks allot for this, I've been looking for this for a long while...many thanks to you and Kid for bringing it up...

 

[Gringotts Bank]

Two of the main characters in the video talk about meditation, mindfulness, being focussed, being in the now.
They must not know about the experts on ASF. I'll email them now and let them know.

 

[Trembling Hand]

Two of the main characters in the video talk about meditation, mindfulness, being focussed, being in the now.
They must not know about the experts on ASF. I'll email them now and let them know.

Hows all that working out for you? You have been here for years trading and banging on about this stuff yeah? Guessing you have it all pretty much figured out now with a nice amount of $$s being pulled out of the market?

 

[Gringotts Bank]

Hows all that working out for you? You have been here for years trading and banging on about this stuff yeah? Guessing you have it all pretty much figured out now with a nice amount of $$s being pulled out of the market?

I got a reply from one of them. He thought Trembling Hand was a song. He hadn't heard of ASF.

 

[doctorj]

Can someone explain to me in simple terms what's the difference between investment banks and hedge funds? Do hedge funds or other investment management companies have long work hours like IBs (if you don't work as a trader)?

What actually is your interest? What you're likely to do at a hedge fund is rather different to what most people working for IBs do. If you were perhaps able to share what you were interested in actually doing, it might help. This earlier post from McLovin is a good start to understand the difference between the two.

The other thing is that working 9-5 only exists in fairy tales and jobs where you're paid by the hour. As soon as you're paid a salary, you're responsible for delivering some sort of output, not simply sitting in a chair for a number of hours. Also, at the more junior levels in investment banking, you're more or less expected to be the first guy there and last to leave as you can't really add any value beyond competently doing whatever relatively menial task your associate or above asks you to do whenever he/she might feel the need to ask you to do it. Very often that may mean them dumping a stack of work on you on their way home for the evening with a request for you to have it ready by the following morning. The lifestyle isn't for everyone, but it does improve as you get more senior.

The other point I will make is about getting into an IB. I don't know what it's like in Australia at the moment, but here in London it is extremely rare that someone will be able to make the move from Big4 accounting into investment banking. You really do need to push to get in as a grad, otherwise it may be very difficult.

 

[Trembling Hand]

I got a reply from one of them. He thought Trembling Hand was a song. He hadn't heard of ASF.

Actually I'll tell them you said hello at our X mass party in a few weeks.

 

[DJG]

.

What's your major/s in?

Thanks for all the information mate. Really appreciative.
Majoring in Finance. - subjects are focused towards analytics, portfolios and investments etc

 

[minwa]

Investment bankers are mostly market making. Their actively managed portfolio(speculation for profit as most retail traders know it) is very small to their overall activity. Hedge fund's main activity is active manage a portfolio, charging fees to stay afloat while trying to grow the fund as big as fast as possible.