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I’ve now been writing about finance careers for almost 20 years, and the topic of the CFA for investment banking never seems to die. I first criticized the CFA in a 2009 article , which generated a lot of angry comments. But earlier in 2023, the CFA Institute announced the biggest changes to the program since it started.
Corporate finance jobs at normal companies are bad … …if you’re using them to break into a deal-based field, such as investment banking , private equity , or venture capital , or as a “Plan B” if you interview around but do not get into one of these. The key questions that corporate finance teams answer also vary.
While everyone seems to know about equity research and trading stocks, fixed income research gets far less attention. But a few other reasons also explain why fixed income often gets overlooked: the unstructured recruiting process, fewer job openings, and the “cushiness” of senior-level roles. closer to the work at a quant fund ).
If you would like a leg up in the recruiting process, consider pursuing courses that focus on finance, accounting, statistics, mathematics, engineering, and economics. MBA programs have recruiting events with all types and sizes of investment banks. investment banking, private equity , VC, etc.) and how our process works.
Note that these tests are different from other ones you may have heard about like the Chartered Financial Analyst (CFA) exams, which are offered by the CFA Institute. Are you focused on recruiting in 2023? Where can I learn more about these exams? Join GetOfficeHours for valuable industry knowledge.
Pair Trades: To achieve this market neutrality, trades are usually paired so that if you long one company in your universe, you’ll short another company, and the gains come from the spread (more on long/short equity ). Many funds, such as Point72, now recruit undergraduates directly via programs like the “Point72 Academy.”
This setup creates many differences with multi-manager (MM) hedge funds , from investment styles to recruiting and careers. Tiger Global is another example of this issue: It started as a hedge fund but later expanded into private equity and venture capital , with different teams for each one.
Additionally, if you’re interested in refining your Excel skills and recruiting for private equity, you should check out our , Private Equity Course. For instance, a private equity analyst can use VBA to build a custom function for calculating internal rates of return, ensuring consistent results across multiple analyses.
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