I recently met with some DCM MD's and they had recommended I consider taking the CFA® exams.
I just graduated undergrad with a very strong finance/accounting background so all/most of the L1 concepts I already understand and are fresh in my mind. When I asked why a banker would need a CFA®, they brought up the fact that it is prestigious and more importantly, might be useful for buyside opportunities.
I've read up a lot on the CFA® and had originally decided it was not for me since I wasn't planning on being an AM. However, I had never considered that it might be helpful for buyside transitions. I also do not know of many analysts that try to doCFA®'s.
Are these MD's just nuts or should I consider their advice? I've already missed the deadline for the June test and taking it in Dec would mean I would need to study on top of banking hours...
I would be interested in some insight into this as well. I heard something similar from an MS associate at a recruiting event.
If you want exits to HFs it can be useful. If you are set on PE, it isn't worth the time.
Doing the CFA on top of banking hours (however deep your finance knowledge) is very tough given the amount of qualitative fluff you need to memorize. I am working on it now, taking L1 in June, and then puting it aside until need be (if that time ever comes) when I would want to move into AM at which point I could do L2 and L3. I worked at 2 different top tier BBs and have heard VERY mixed reviews: - some said it was no help at all for private equity and was only useful as an AM designation... - another said (like you mentioned) that it was prestigious and a differentiating factor for all future endeavours
...Clearly, I had nothing better to do with my time and chose to believe the latter.
agreed, i think i would've done the same as you if i could've taken it june. unfortunately the signup for the june test passed and i can only do decemeber now...
i think it might also have to do with which part of banking you're in though. i imagine the DCM guys deal with the sales/HFs more than the m&a guys so there probably more use for CFA there, correct?
You're right about that. Definitely more use for it when dealing with HF's. Being in PE, I can tell you for a fact that very limited individuals involved in M&A have or pursue the CFA. It's usually more AM's, prop traders, and some treasury management bankers that have the CFA. Some of the information in the L1 exam is useful for M&A, but nothing you didn't get in a few basic undergrad finance and accounting courses. But, the CFA will give you options if you pursue it. When whole areas of finance come and go in a job market, the CFA can give you an in somewhere else that is adding jobs when your shop is downsizing. Just a thought.
Bottom line, it won't hurt you.
Further education is never really a bad thing. You have to decide what is more important, writing the CFA takes a lot of time
CFA for HF and Buyside (Originally Posted: 09/20/2007)
Dear All
I wanted to get people's current opinion on the CFA and hedge funds.
It seems as if there is a schism in opinion on how to get there or the best overall route. Some believe it is IBD and some believe it is just those who have a passion and a great understanding of the market.
I personally left IBD to be able to learn more about the market and understand it in a wider light. I felt as if while in IBD you are so consumed with medial tasks that you do not have the 1-2 hours to perused through the WSJ, Financial Times, Economist, etc. Also, I personally believe or have been previously led to believe that a CFA is not only a must for buyside/HF but without it there is no hope, this could be wrong.
I also believe that an MBA is useful and lets face it IB is not the best starting point to get into a top MBA program, it use to be but not anymore. My first year every second year got denied from good schools while friends from college I have around the same age who did a multitude of things all got into great schools.
I have and I continue to enjoy my time at a financial leadership position because it gives me time to invest (without compliance making me hold for an extensive period), time to take graduate classes at my Alma Mata Boston College, I now have time to have a life and contribute to a growing but stable company, and I get to do some extracurricular which is better than working on things which 50% of potential clients throw out.
Yes, I took a 35% pay cut but I also took a 60% hour cut, my work means 100% more, and my responsibility tripled, 300% to keep with the theme.
I guess my ending question is: really what is the best way into a HF.
I have read and searched but none post fully explain or is an active discussion/debate.
bumping please
anyone?
no one?
cfa is definitely not a must --- but it can be useful.
the skill set required to work at a hf will depend on their strategy and the role that you want to take on.
do you want to be work at a quant fund? fundamentals? global macro? etc. etc.
trader? risk manager? research? etc, etc.
I want to do research on a way for a PM roll...I want a fundamental fund what are my chances being that i did 2 years of corp finance after 1 year of ibd...what else do i need?
The CFA looks good to clients, but that's about as far as it goes. However, if I was investing in a hedge fund, i'd rather someone have $$$ beside their name than CFA.
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