What financial services entry level position would get me on the hedge fund track?

I've often heard that i-bank analysts are in high demand at hedge funds, that their training gives them a leg up on others who want to get into the hedge fund space. I'm a graduating senior with an econ major (my school doesn't offer a finance major) and I want to someday work in the hedge fund industry, but I'm not so sure I want to live the lifestyle of an analyst.

Instead, I'm more interested in equity research or asset management, following the market. Do entry-level positions in these areas provide a good background for my goal? What about trading?

Thanks.

First things first, and that's that you should certainly not take advice about finance from someone who calls it "Morgan and Stanley" - it's simply "Morgan Stanley."

Now that that's out of the way, I'll help you.

There are several questions you need to ask yourself - what do you want to do at a hedge fund? Do you want to be a trader or a research analyst? Are you looking to join a fund that makes long-term or short-term investments or quick trades? For quick trades, being a trader (at an investment bank) with a computerized model and decent gut instincts is most valuable, as you'd need to constantly evolve with the market. For the other types, being an investment banking analyst is very helpful. The skillset you acquire as an analyst puts you in good shape for a move to the buyside (ie. hedge fund, private equity fund, etc). Asset management might be helpful; equity research will be helpful if you're looking to take a research role at a hedge fund. I would say, however, that either trading or investment banking would be the best way to build the proper credentials for joining a hedge fund.

Lastly, insurance companies like Zurich and Aetna are not good for what you're looking to do, trust me.

Also, note that the major investment banks are in final stages of recruiting, so if you're not on that train yet, get yourself into gear. Good luck.

Hi David,

I work in the hedge fund industry in Boston. Your options are many. Going the trading or analyst route with a hedge fund or fund of fund shop would probably be your best bet. You will have to put your nose to the grindstone and work hard for 2-3 years but if you get your CFA during that time you will be in great shape very quickly.

Two things helped me get into this industry.

1. Before graduating I called and "cold emailed" over 100 professionals and asked to meet with them for coffee or give me advice over the phone about what they did and what I should do to get into the industry.

2. After graduating I sat down with 25 principles of small and mid-sized firms and did informational interviews learning all I could about open positions and career paths.

Let me know if you would like more advice. I have written over 100 articles on hedge funds within my "Richard Wilson Hedge Fund Blog" which you can find a link to here:

http://www.richardcwilson.com