DCM to Elite Hedge Funds

Can anyone shed some light on getting into HFs from a non-M&A background (specifically capital markets)? I am considering pursuing DCM out of ugrad and was wondering if any exit options into HFs existed there.

On another note, does anyone know if there is a differentiation between HF targets and IB targets? Or would they all be the same: HYPSW, Columbia, Mich, UVA, NU?

 

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Best Response

I've done capital markets and had to transfer to banking because HF just weren't looking at me. And now all the cap mkts experience is crazy invaluable in my current gig.

It's not impossible... here are some paths: IG DCM = useless HY DCM (Lev Fin) = credit funds ECM = long short (maybe after a stint in banking) Structured Product = credit funds

I think overall just harder, but not impossible

Uhh HF targets? No such thing AFAIK

 
roversam:
I've done capital markets and had to transfer to banking because HF just weren't looking at me. And now all the cap mkts experience is crazy invaluable in my current gig.

It's not impossible... here are some paths: IG DCM = useless HY DCM (Lev Fin) = credit funds ECM = long short (maybe after a stint in banking) Structured Product = credit funds

I think overall just harder, but not impossible

Uhh HF targets? No such thing AFAIK

I dont understand why IG DCM is useless. Surely there is some knowledge about fixed income products there? Why would ECM be anymore useful (excluding stint in banking)?

 

i worked for HY DCM in my first banking job

unfortunately i agree here...IG DCM adds no value...its almost as dumb as data entry. HY DCM and EM DCM gets slightly interesting...but still just scraping by.

DCM teaches you little to nothing about trading....its a middle ground between the sales side of sales & trading, and investment banking. DCM really is just a service the banks provide to make investment banking easier. The IB guys do the advisory work, make the deals, make the pitches to the companies....the DCM guys just present the IB stuff to the sales force and clients (after IB creates it) and they organize the roadshow if necessary...how much prestige do you give to a party planner??...its one of the last things in a series of tasks that the IB people would do...but since it is so commoditized...they made a special group that just does DCM (because it doesn't take the kind of work that IB does).

DCM doesn't take risk positions (thats the trading desk) DCM doesn't come up with new ideas (thats IB)

DCM just executes somebody elses task at the end of the line. Its not "nothing" but it is bottom of the barrel front office.

just google it...you're welcome
 

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