I’ve spent the last two years grinding on M&A deals in IB, but I’m realizing I want to pivot to a hedge fund role where I actually make investment decisions. The jump from executing transactions to managing discretionary portfolios feels massive – especially the shift from following orders to owning asset allocation strategies. What technical concepts (risk modeling, portfolio optimization, etc.) should I prioritize mastering from community resources before interviewing? Are there specific frameworks or mental models that veterans who’ve successfully transitioned found indispensable?
bankers thinking they can pick stocks lol. newsflash – your LBO models mean jack when the market tanks. learn to sound smart about ‘macro trends’ and practice explaining why your trades blew up. real skill? convincing investors you meant to lose their money. good luck kid.
they’ll grill you on drawdowns not dcf. forget about your precious deal sheets – nobody cares how many pitchbooks you slid. start tracking live portfolios yesterday. and don’t say ‘alpha’ unless you want eye rolls.
wait do HF interviews ask about specific asset classes? im also looking to switch but idk if i should focus on equity or credit strategies. pls help!
Transitioning successfully requires three foundations: 1) Develop conviction – portfolio managers need analytical rigor AND decisiveness IB rarely demands. 2) Master scenario analysis beyond deal models – stress test how correlations break down in crises. 3) Study how top funds allocate capital across time horizons. I’d prioritize the community’s crisis case studies pack over technical manuals.
you’re already ahead by recognizing the skills gap! shadowing PMs and mock pitch sessions helped me loads. stay curious – you’ve got this!
Per our 2023 member survey, 82% of successful transitions involved mastering tail risk hedging frameworks. Prioritize: 1) Value-at-Risk calculation fluency 2) Factor exposure analysis 3) Liquidity-adjusted returns. The community’s ‘HF Technical Prep’ module covers these with market crash case studies.