Opinion of MBAs at Hedge Funds

I agree with that analysis of hedge funds and MBAs, however, an MBA from Finance centric schools are perhaps and exception to this. An MBA from say Wharton, Columbia, NYU, Chicago, MIT or London Business School, would be useful at a hedge fund. In fact LBS has a full on research center dedicated to HFs - check out the BNP paribas Hedge fund research center at LBS.

I think this is exactly right. I think an MBA will help you break into the HF industry in the following ways:

1) Pass the initial screen. A lot of smaller HF shops literally have nobody in human resources. The PM's will go through the resumes, and they can use the MBA as an initial screen.

2) Alumni connections. I think this industry takes a little bit more networking than others. Setting up informational interviews with alumni is a good way to learn about day-to-day activities and various investment styles. Also, since a lot of HF jobs aren't advertised, it's a good way to learn about job openings. It's not uncommon for an information interview to turn into a job interview.

3) Part-time internships during school. Some smaller shops offer PT internships, where you basically look at a company and give an in-depth report. In a sense, the shop is outsourcing some of their research. Some pay and some don't, but regardless, it's a great way to get your foot in the door.


Obviously you don't need an MBA to work at a HF, especially if you have a great background. But an MBA can certainly be a big help.

Throwing my 2 cents in, I currently work at a macroeconomic hedge fund (approx $9bn AUM). Of the 250 people within the fund, there are 3 with a MBA. The schools represented are Harvard, UChicago and MIT.

As an employee, my perspective is that hedge funds value relevant experience. The higher compensation is due in part because they do not want to waste money and, more importantly, time training someone new to the post.

Keep in mind this is for a macro fund. (Interestingly, the number of former collegiate athletes = 30-ish).

I may have a chance then

The cool kids at HBS are landing HF internships left and right.

L.

Depends on the demographic, doesn't it? I had a look at some HFs in New York, and when you see a board made of HBS MBA's, you can tell where they are likely to recruit from.

I recently read an article in the nytimes, I think, that touched upon this. The bottom line I got was that getting an MBA is somewhat frowned upon if your pre-MBA work was in financial services. However, it's not if you didn't work in financial svcs previously and are looking for a career switch.

I am not so sure about that. Financial Services is such a big business, you can be miles away from what you want to do while working for the right name. I know my move has worked fine and been seen sensible, and there are a good few others I know who have done similar. It is really something you need to consider on your own case - how much sense does the MBA make?