IB vs Hedge Funds Questions!

Career Opportunities & Internships Investment Banking
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<p>Hey everyone,
I am currently in grade 11 International Baccalaureate (IB). IB is a very rigorous high school program within which you are taught a higher standard of education. I am enrolled in IB at a private school in Canada called Ridley College. Math is my strongest point, and at Ridley I have a 93 in it, but through the conversion chart, I have a 97 because it is a private school. All of my other courses are above 85 in Ridley, so 7 out of my 8 courses are above 90% after conversion, the 8th is around 88. My GPA is 4.00. </p>

<p>I need to make my decision on my future now in order for me to decide whether I should take Higher Level Business or Higher Level Chemistry. No matter what way I go, I will take Higher Level Biology and Higher Level English. Just need to decide my third option.</p>

<p>These are my questions.</p>

<ol>
<li><p>What undergraduate programs should I take, and is U of T a good place to get them (Rotman School).</p></li>
<li><p>I plan on going to the USA for my MBA, so can I just go straight from undergrad to MBA? I do not plan on working in between, as my parents are going to be paying for my younger brother in Ridley ($30,000/year) and me in University in USA (around $50-75,000), totaling around $100,000 at most. I will take some loan, but not a full one. Is this a good plan?</p></li>
<li><p>I plan on doing an MBA from HYPS or Wharton or NYU. Are those all good schools, as I plan on working in Manhattan?</p></li>
<li><p>Should I take the CFA during my last year of University?</p></li>
<li><p>I enjoy business, and I am not doing this only for money, but the money is a important factor, obviously. Which would be better to follow, Investment Banking Associate right after University, Hedge Fund Manager after University, or Investment Banking Associate after University, then exit into Hedge Fund Managers.</p></li>
<li><p>Is it even possible to become a hedge fund manager right after University?</p></li>
<li><p>About how much do Investment Bankers make after university (post MBA + CFA)</p></li>
<li><p>If I do investment banking first, planning on doing Hedge Funds later on, how many years would it take to go from Investment Banker Associate to Hedge Fund Manager?</p></li>
<li><p>How long would it take to be promoted from an associate in i-banking up the ladder, and how much does your pay increase by? I plan on being the "Star" of my office, being there early, covering for people, doing all my work to the best of my abilities, being on time.</p></li>
<li><p>Which has a higher salary, staying i-banker associate for however many years it take to be promoted, and move up the ladder, or go from i-banking associate to hedge funds? Do you go straight from i-banking associate to hedge fund manager, or is there something like a hedge fund associate?</p></li>
<li><p>Is there a risk of losing all your money in a second as a hedge fund manager?</p></li>
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<p>Thanks for answering, and sorry for all the questions. Just want to know if I am making the right decision!</p>

<p>EDIT:
AND FINALLY, Should I go into I-banking, then exit into Private Equity? Does pay in PE come anywhere close to I-banking or hedge funds? And is an MBA + CFA good for PE, and how long does it take to go into PE from I-banking as an associate?</p>

<p>So, for me, which do you think is best?
Investment Banking all throughout
I-banking then Hedge Funds
I-banking then Private Equity
Private Equity right after MBA+CFA?</p>

<p>Thanks again all of you!</p>

2

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<p>This is where you’re wrong at first. Investment banks do not care if you major in finance or chemistry or history. I’ve met people from many backgrounds - music, engineering, finance - even Olympic athletes, and they’ve been accepted as employees at investment banks because they add value through a diversified mindset and a different way of looking at things. Even the smartest shops need new people with fresh perspective to add value to existing processes, and different backgrounds lead to different mindsets, which could lead to unique ideas. </p>

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<p>Rotman is a great school. There’s also Ivey, which is heavily represented on Wall Street - I think it’s a junior-level undergrad admission program, but I’m not sure.</p>

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<p>Simply, no. Do not get an MBA without work experience. Even if you go to Harvard, employers expect 2+ years of full-time work experience upon graduation from an MBA program, and you won’t be able to get a job after graduation. That said, work as a banking analyst for 2 years if you can get that stint and then enroll in a top-notch MBA.</p>

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<p>You’ve got to do your research. Here are top business schools (not ranked):
Harvard
Stanford
Columbia
Wharton
MIT Sloan
Chicago Booth
Northwestern Kellogg
Dartmouth Tuck
Yale
NYU Stern</p>

<p>Others are okay, but don’t go to them if you have a choice of the above listed schools. For the most part it’ll be a waste of money.</p>

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<p>Don’t know - it depends on where you are in recruitment. From my experience it doesn’t help much with banking but it might help with equity research or hedge funds.</p>

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<p>Investment banking analyst after college, then hedge funds. </p>

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<p>No.</p>

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<p>200 w/ bonus? Honestly I don’t care about comp so I didn’t ask.</p>

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<p>Banking isn’t a fantastic entry point for hedge funds, as for the most part their skillset requirements are pretty different. You could start a hedge fund when you’re young but you won’t be successful unless you can prove that you will be successful. That takes a long time. It could be 10 years, or it could be 50. You never know.</p>

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<p>That’s what everyone does. Have you ever worked 100 hrs/week? Have you ever been fearful of losing your job because you messed up coffee runs? Have you ever been woken up by an MD on the other side of the world at 4am asking for a pitch book for a client that won’t look at it until the next week? It always happens - I was scared of losing my position and I was just an intern. </p>

<p>Your pay increases substantially when you get promoted to associate level. But very few people actually go from analyst to associate directly - most exit, go to business school, or look for buy-side opportunities.</p>

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<p>Yes. There are hedge fund analysts. Some even hire right out of undergrad (DE Shaw, GSIP, Bridgewater, Citadel, etc.)</p>

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<p>Yes, but only if you’re an idiot.</p>

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<p>PE firms hire out of analyst programs at elite banks, so try to get bulge bracket or elite boutique. Also, they hire out of certain divisions, so try for classic M&A or leveraged finance. They pay more than banking (if you’re good) and comparable with hedge funds (again, if you’re good). </p>

<p>And I don’t know you so I can’t answer the last part of your question. But if I were you I wouldn’t worry about that yet. Stay in school, work hard, and you’ll figure it out.</p>

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<p>WOW! I could not have asked for a better response! Thanks man! So it seems that I will be being an Investment Analyst out of Undergrad for about 3 years, then would I go do my MBA and then would you suggest going back into I-Banking as an Associate with a higher pay, or should I be an I-banking analyst for 3 years, then exit into Hedge Funds, and in Hedge Funds, would it be better if I had my MBA?</p>

<p>In short, do you think getting my MBA is worth it if I am planning on going into Hedge Funds or Private Equity? And should I get it after my 3 years of I-banking analyst?
I know you NEED an MBA to go anywhere above Analyst in i-banking.</p>

4

<p>An MBA is really a career decision that becomes apparent later on - the appropriateness of getting one is different for everyone. If you go to an underrepresented undergrad institution, it’s more appropriate to get an MBA. If you go to Wharton, an MBA won’t be as necessary - it’s a lot about getting a new school on your resume.</p>

<p>Also, for the most part getting an MBA is about the alumni network as well. Schools like Harvard Business School have extensive connections in every field imaginable.</p>

<p>And an MBA is largely unnecessary for many of the roles within finance - if you’re really good and can prove it, honestly you probably don’t even need to graduate undergrad (assuming you’re godly). It’s a meritocracy. That said, I’d say that most partners at PE firms have MBAs, but at hedge funds it’s more about how good you are and less about your credentials.</p>

<p>The typical path is IBD analyst > MBA > PE/HF.</p>