<p>Thanks C, you’re making some interesting points here and now I’m real concerned…did you say an MBA is worthless if you want to get into HF? What about a Master of Business Taxation, would that be better?</p>
<p>I thought the MBA opens doors to virtually any field…are we talking about management consulting, private equity, that is what MBAs are typically for, and not Hedge funds?</p>
<p>^Actually one from DEShaw was a psych major and is working there…how in the heck is that possible? Did she take some post-bac classes in economics or finance because why else would they hire her? On what basis? Weird…</p>
<p>Let me clarify, to become a trader an MBA is relatively useless. It can be used to transition into trading, but traders don’t have a very high opinion of it, largely for the same reason that your friend was picked up as a psych major at DE Shaw… trading is a different animal. It is a lot of learning by doing, they like smart people… they can train people about financial markets, but they can’t teach intelligence and ability to handle pressure. MBAs are much more focused on corporate finance, and not market applications. Quantitative majors are looked upon favorably because there are many products in which understanding mathematics is helpful (particularly in the options world).</p>
<p>If I’m not mistaken (though I am not as familiar with HFs) MBA is fine to transition to HFs as an analyst, but you’ll never see someone with just an MBA being a quant.</p>
<p>DE Shaw has a special generalist associate program for liberal arts majors.</p>
<p>For most funds, there are 3 major front-office roles - execution trading, portfolio management/analysis, and quantitative research. Some groups are more quant-heavy such as high frequency trading, some are largely PM-driven like merger arb. It’s “easiest” to be a trader in that people from all sorts of backgrounds can break in - you have to be comfortable with numbers and quick, but there’s no specific academic background that’s necessary, just general intelligence. Portfolio managers and their supporting analysts usually have MBA’s and/or significant experience in either an investment research, trading, or investment banking role. PM’s require sector-specific expertise in order to effectively conduct high-level analysis and make intelligent investment decisions. It also helps a great deal if PM’s have a large rolodex of contacts to glean helpful information from other experts in their respective sector (Galleon was recently burned for “gleaning” a bit too aggressively). Finally, there are the quants, which is obviously extremely quantitatively rigorous and generally requires a PhD.</p>
<p>Most undergrads are only qualified for trading. Some geniuses can break into QR, but they’re extremely rare (I only know one guy who was able to break into DE Shaw as a quant, and he was a math whiz - top 20 in the Putnam competition).</p>
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<p>Yes, but only those with previous finance experience. Most HFs are small and not equipped to train career switchers right out of B schools.</p>
<p>A mix of the challenge, the prestige, and the pay. I’ve been attracted to that aura of finance since reading The House of Morgan years ago. It’s just taken me 'til my first year of college to realize it.</p>
<p>Im looking forward to being an investment banker…tired of being a sales consultant at the dealership i work for…Im 26 finished my BS in Finance…and tired of making everyone else Millions of dollars…while i barely pull in 80K…been on wall street for some interviews about two weeks ago…landed one of the two jobs…but not sure if i want to take a trader postion at least for that particular company…but Im very sure abotu I-Banking…its in my nature…acquisitions…mergers…I can close any deal placed in front of me…</p>
<p>@lylemaur - at 26 with just an undergrad degree you will not be closing or handling any deal. Your job will be to prepare pitch books and proofread SEC filings. Hope you enjoy this at 2am. Moving from trader to banking is nearly impossible. I’ve been in this business 20 years, so here’s my advice: Take the trading job, absord as much as you can, read the prospectuses of the deal you are trading, talk to analysts to understand what they look at, save enough money and go to business school, get a top-notch internship in the summer that will launch you into banking. Even then you will still be preparing pitch books for 3-5 years.</p>
<p>NJMOM</p>
<p>I am current undergraduate student looking to eventually getting into PE. What advise would you give someone in my position?</p>
<p>mx - hope you are taking the toughest finance classes you can at a good school. (I was an accounting major, which is a great foundation). Get a part-time job with a local financial institution (bank or brokerage) so you have a ‘in’ to training programs. Life is also about getting breaks - make contacts, talk to professors. I did Fixed Income for 20+ years and fell into a PE opening within my firm 3 years ago. You never know where you will eventually morph into on Wall Street, as it is always changing!</p>
<p>I guess that obviously money is THE big fact of attraction for investment banking, but you cant really say that!!!</p>
<p>This thread is quite helpful to give you some ideas on how to aswer the WHY in a polically correct way:</p>
<p>[AskIvy.Net</a> | Finance Interviews, Career advice](<a href=“http://www.askivy.net/content/how-answer-why-investment-banking]AskIvy.Net”>http://www.askivy.net/content/how-answer-why-investment-banking)</p>
<p>Then to avoid all the pain and the work when you get that job:</p>
<p>[AskIvy.Net</a> | Finance Interviews, Career advice](<a href=“http://www.askivy.net/content/8-tips-how-avoid-work-analyst]AskIvy.Net”>http://www.askivy.net/content/8-tips-how-avoid-work-analyst)</p>
<p>why to funny
[YouTube</a> - Damn It Feels Good to be Banker – A Wall Street Musical](<a href=“http://www.youtube.com/watch?v=ROlDmux7Tk4]YouTube”>http://www.youtube.com/watch?v=ROlDmux7Tk4)</p>
<p>law school vs bschool</p>
<p>[YouTube</a> - B-School Guy v Law School Guy](<a href=“http://www.youtube.com/watch?v=c3FTaljUVcU&feature=related]YouTube”>http://www.youtube.com/watch?v=c3FTaljUVcU&feature=related)</p>
<p>I wouldn’t mind working hard for a few years while saving, and then using that money to invest elsewhere.</p>
<p>Obviously people work in investment banking for money</p>
<p>And for women and cars and status, which all come from having money</p>
<p>
Yes, but women, cars, status, and money all come from having power. There are many cases of those having a lot of money and yet no power; although there are very few cases of those who have power and no money. ;)</p>
<p>Not everyone is obsessed with power and money or the things it attracts, like shallow women, or the things you can buy. What you ARE has nothing to do with what you HAVE. There are a lot of very rich people out there who are totally insufferable personalities you wouldn’t stand being in a room with, they think they are so important. The reality is that they are boring as hell. If investment banking means 100 hr. weeks and looking like 70 at 50, I’ll pass. I need a life outside of work. The vast majority of people would agree.</p>
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<p>what’s the point of this post? Nobody said IB was for everyone.</p>
<p>^ Wreckedddd</p>