Moving out of Investment Management

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AstuteInvestor

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A lot has been talked about people wanting to move into investment management. I used to be operations management manager for one of big 5 firms, got my opportunity in investment management and after 2+ years working in this industry, having second thoughts whether this is the right place from career growth perspective. I help with manager and financial markets research.
I wonder if people have tried moving out (voluntary/involuntary) and what kind of opportunities they have seen? How their investment experience has benefited them.
Several issues I see with this industry, perhaps it is just me. Too Risky if following come true:
-Firm loses key men/Clients, assets go out
-Not enough demand for skills I have even if paid well
-If firm closes or gets sold out, will I get something similar outside? Very hard to get.
-Egoistic work culture on top, less team oriented more indivualistic.
 
so you work at a fund of funds picking which asset managers to invest in. Generally, that’s not what most people shoot for on AF, as most want to be the actual person picking the investments.
FoF is generally more risky, because your only real movement is to another FoF or consultant group that does the same thing. It is tougher to get, but there are surely ops out there.
you are only 2 years in, so you still got time to move to something else.
 
By something else, did you mean a buy side type of role?
I will love to be the actual guy picking investments like most here on AF. Since this was the first opportunity that came to me, I grabbed it, thinking once I started working in this industry and pass all 3 levels of the CFA program, I will be in good demand and perhaps advance into the guy picking investments. Working toward a buy side role but it is damn difficult. In my previous role, I would have 5 offers on table without asking if I gave my name out to my friends working at competitors. Previous role, less people and more work. It was so easy. I was lured by my strong desire to do investing be the next great investor atleast make few millions.
I certainly know more about way the investment industry works aka how the money flows from retail/institutions to RIA/Consultants to acutal money managers to custodians / trading platforms. All money is made on fees for AUM.
Was curious if someone came out of investment management.
 
AstuteInvestor wrote:
By something else, did you mean a buy side type of role?
I will love to be the actual guy picking investments like most here on AF. Since this was the first opportunity that came to me, I grabbed it, thinking once I started working in this industry and pass all 3 levels of the CFA program, I will be in good demand and perhaps advance into the guy picking investments. Working toward a buy side role but it is damn difficult. In my previous role, I would have 5 offers on table without asking if I gave my name out to my friends working at competitors. Previous role, less people and more work. It was so easy. I was lured by my strong desire to do investing be the next great investor atleast make few millions.
I certainly know more about way the investment industry works aka how the money flows from retail/institutions to RIA/Consultants to acutal money managers to custodians / trading platforms. All money is made on fees for AUM.
Was curious if someone came out of investment management.
Click to expand...
The problem is this. The skills required for picking asset managers is very different from actually picking stocks.
in reality, you can move from pick stocks -> pick managers.
But pick managers -> pick stocks almost never works
 
itera wrote:
AstuteInvestor wrote:
By something else, did you mean a buy side type of role?
I will love to be the actual guy picking investments like most here on AF. Since this was the first opportunity that came to me, I grabbed it, thinking once I started working in this industry and pass all 3 levels of the CFA program, I will be in good demand and perhaps advance into the guy picking investments. Working toward a buy side role but it is damn difficult. In my previous role, I would have 5 offers on table without asking if I gave my name out to my friends working at competitors. Previous role, less people and more work. It was so easy. I was lured by my strong desire to do investing be the next great investor atleast make few millions.
I certainly know more about way the investment industry works aka how the money flows from retail/institutions to RIA/Consultants to acutal money managers to custodians / trading platforms. All money is made on fees for AUM.
Was curious if someone came out of investment management.
Click to expand...
The problem is this. The skills required for picking asset managers is very different from actually picking stocks.
in reality, you can move from pick stocks -> pick managers.
But pick managers -> pick stocks almost never works
Click to expand...
I recently interviewed with a large fund of funds group, and the impression I got was that you don’t develop transferable skillsets that allow you to move over to direct investing or research. Basically you move around to other fund-of-funds or investment consulting (not that there’s anything wrong with that).
 
Every industry has risks. Life is full of risks. Getting out of bed has risks. Staying in bed all day has risks. If you have a passion for the industry, work hard and make yourself indispensable. By going the extra mile in everything you do at work, you won’t have any issues maintaining gainful employment. If you hate the industry, keep an ace in the hole (i.e. your day job) until you find your calling elsewhere.
 
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