Considering a career change to buy-side from business consulting

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EverythingButThe

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All,
I am 31, married with a kid, and gainfully employed as a technology/business consultant. I make a little over 100k a year. I have a graduate degree in computer science. I have 8 years of work experience, including 5 years at investment banks (doing tech work), and 2 years at a large consulting firm.
I am sort of happy with my job, but don’t really see it taking me places. Unless I make partner at a big consulting firm or start my own staff aug company. My earning potential is probably going to linger around 100-150k over the next 5 years given what I am doing now. Anyway.
I have been interested in the buy-side / investment management business for a really long time. I just never attempted moving in that direction, for whatever reason. But I am seriously considering it now. I am making this post to get your thoughts on the feasibility of my ideas.
- My plan is to work on clearing CFA Levels 1 and 2 over the next 2 years. (Thinking of June 2011 for my first attempt at Level 1).
- Because of personal circumstances, I may end up geographically close to Stanford or Princeton in 2 years. I am thinking of applying to their MBA programs to start in the Fall of 2012. (I will be 34 when I graduate.)
- I am NOT interested in the sell side. I would like to start directly in the buy-side. Specifically, I want to do equity research for a reputable mutual fund company and work my way up to portfolio manager.
- I also have a vested interest. I am hoping that the CFA, MBA and experience will help me find a job in the emerging markets, so that I can live there for a few years and my kid can experience it.
Questions for the community:
1) I am thinking of directly getting into the buy-side. From what I have read so far (Vault guides, etc.), most portfolio managers start out doing equity research on the sell-side, make a good name for themselves and get hired on the buy-side. Given that, is my plan feasible? Or is it very unlikely?
2) From a money standpoint, how much can I expect to make? Based on what I have read on the web sites of Stanford, Wharton, etc., I am guessing that I may be able to start with 120k. But what if I don’t get an MBA? What if all I do is the CFA? (assuming I can convince a firm to hire me?)
3) Has anyone on this board worked in an emerging market? How hard is it to start in the US and transfer out to a foreign country?
4) How are the buy-side hours? Will I be able to come home at a reasonable time to see my kid before bedtime?
5) How does working for a company like Oppenheimer compare vs. Fidelity vs. TIAA-CREF vs. Franklin Templeton?
Thanks in advance for your comments.
 
Hi, EverythingButThe
I am in a very similar situation and do share the same questions as yours.
I am 35 and working in the IT field for 9+ years(developer, BA), I also have master degree in mechnical engineering. but I only make around 70K. My earning potention is probably going to linger between 70-90K over the next 5 years given what I am doing now. Clearly I did not plan my career very well…
I have been interested in the ER, investment management(portforlio manangement) for a while. Last summer I made decision to make a career change - to become a professional in the investment area. I treated it very seriously because it is my final career goal after so many years’ reflection. I took my level 1 this June and passed with good results.
I was hoping to find a position in the investment/financial analysis area after I passed level 1. But after read quite a few threads here, I am not that confident. I am kind of lost…
But anyway, good luck to you and hope everything is well with you.
 
Princeton has no MBA program. You could go to Rutgers?
 
^Yeah, no disrespect but it’s hard enough for someone WITH finance experience CFA & MBA to go directly to buy side research.
 
Start your own fund. I think that’s the only way first or second poster can do it.
The second poster shouldn’t even be trying
 
^ and once fund starts rolling billions, second one should divorce the first one and take away most of the his assets. BTW, Ghey marriage is legal in US.
Chad- Please create a section for those who are interested in moving from IT to FO.
 
oldmanwithheart,
Passing level I won’t get you anywhere and people might laugh if you put that in your resume. Thank God that you are lost already after level I. I would recommend to forget CFA and take GMAT and go for FT MBA if possible to top-school in order to give yourself a slight chance.
Art and superiorreturn - +2 to both of you.
 
i would imagine you would have an investment track record of some sort. day trading doesn’t count.
but i also imagine that you don’t considering you have yet to do any finance courses.
 
Why is there so many IT people trying to switch to finance jobs? They want to completely switch careers? I suggest stay in IT and get an MBA somewhere. Just like the other poster said, its hard enough for people with CFA and exp to switch. There is plenty of finance grads that had a passion for the industry many years before these random IT people came along.
 
Hi,
could you put more for this one - The second poster shouldn’t even be trying?
Don’t worry, I appreciate any helpful suggestions and advices.
 
^ Because 9 years in IT woldn’t make you portfolio manager. Buy side firms want someone who has relevant experience at a top firms doing research, analysis etc and one has to be from Top school.
You can go for IT gig in buy side firms but would be tough if possible to land a gig in FO. You need to be practical here. Will you hire someone as a programmer if he is working in a Post office selling Stamps for 9 years.
 
Hi, pupdawg82
To be honest, I did put it into my resume, don’t laugh at me :-)
could you elebrate more on your last comments?
———————————————-
Passing level I won’t get you anywhere and people might laugh if you put that in your resume. Thank God that you are lost already after level I. I would recommend to forget CFA and take GMAT and go for FT MBA if possible to top-school in order to give yourself a slight chance.
———————————————–
I think my probablem is the career direction, I’ll be grateful if you can provide some insights.
 
oldmanbutwithheart Wrote:
——————————————————-
> Hi, pupdawg82
>
> To be honest, I did put it into my resume, don’t
> laugh at me :-)
>
> could you elebrate more on your last comments?
>
> ———————————————-
> Passing level I won’t get you anywhere and people
> might laugh if you put that in your resume. Thank
> God that you are lost already after level I. I
> would recommend to forget CFA and take GMAT and go
> for FT MBA if possible to top-school in order to
> give yourself a slight chance.
> ———————————————–
> I think my probablem is the career direction, I’ll
> be grateful if you can provide some insights.
People generally realize after passing level III that they won’t be able to land a FO role but somehow get IT role in financial firm in support role after CFA. It seems you already realize after level I that CFA is no magic lamp and now you won’t pursue to finish this program.
 
EverythingButThe Wrote:
——————————————————-
OK enough of negativity and time for some positivity.
I know at least 2 guys (personally) with very similar profiles make it into a very decent buy side firm.
One of the guys did similar IT work, went on to start his own company, ran it for couple of years, got a Top Tier MBA and was hired as an Equity Analyst. 2 years into his job, he is an Associate PM for their largest fund. Mind you, during all this he showed “passion for investing” and passed all 3 levels of CFA. Now he is waiting for one more year (this is his 3rd yr at this job) to get the Charter and is expecting to become the Lead PM of that fund.
However, you have to decide how you want to show your “passion for investing”. He was your age when he started out at this job.
1) I am sure you can do it with smart planning and calculated steps.
2) Money-wise, you won’t be too far off initially with a much higher upside
3) No idea
4) Usually around 60-70 hours/week. Also, variability in work hours depends what markets an analyst covers. Our Global Equity team sometimes comes in during the night if they are following a company in Korea and need to speak with the Management over the phone because of time difference.
5) No idea.
 
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