Investment banking vs hedge funds

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In this video I talk about the differences (and similarities) in investment banking and hedge fund careers. I cover areas including top firms, breaking in, salaries, work/life balance, the nature of the work, progression and exit opportunities, and more.
TIMESTAMPS:
00:00 - Intro
01:03 - Top investment banks and hedge funds
01:36 - How easy is it to break in
02:57 - Nature of the work, fees and grunt work
06:22 - Commercial awareness (sponsor: Noa (News Over Audio))
08:16 - Base salaries and bonuses
10:23 - Hours and work/life balance
11:25 - Progression and exit opportunities
14:16 - My personal advice
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ABOUT ME:
Hey! I'm Afzal Hussein. I make videos on banking and finance, careers, productivity and lifestyle. I'm also building Simpley (a marketplace for career advice), and I teach on Skillshare. Before all of this I started my career working at an investment bank called Goldman Sachs. Hit the various links above to find out more about me. Thanks for passing by!
#InvestmentBanking #HedgeFunds #Finance

Пікірлер: 91

  • @AfzalHussein
    @AfzalHussein3 жыл бұрын

    Get your 1-week free trial to Noa. The first 250 people to use the code ‘AFZAL50’ at checkout will also get a 50% discount off an annual Noa subscription. Visit: newsoveraudio.com/afzal

  • @aishwaryamaggi7439
    @aishwaryamaggi74393 жыл бұрын

    Can you do a video on quantitative finance roles and focus on the emergence of Data Science and Machine Learning in the industry

  • @SyedZahedi

    @SyedZahedi

    3 жыл бұрын

    Don’t know if this has been answered in a video already but DS/ML is increasingly being used in the front office - the larger firms have dedicated ML research divisions and portfolio managers are now utilising data scientists more effectively (depending on the type of firm). Use cases vary wildly from earnings predictions to portfolio allocation etc

  • @alejandroabad-pablo7813

    @alejandroabad-pablo7813

    3 жыл бұрын

    Please make this video happen

  • @BrainyFinance
    @BrainyFinance3 жыл бұрын

    Super useful info with a lovely lo-fi background, thanks for sharing!

  • @taranjain8621
    @taranjain86213 жыл бұрын

    Afzal, I love your videos especially your study/ work with me videos.

  • @ivinitmittal
    @ivinitmittal3 жыл бұрын

    Was waiting for this video!! ✌️

  • @mohamedalhamdani4964
    @mohamedalhamdani49643 жыл бұрын

    Finally ,thanks for doing this video maybe u could go into more detail of hedgefund salaries and bonuses aswell as co investemnt opportunities likewise with PE :salaries plus bonuses and co investemnt .love the video

  • @dekass7965
    @dekass79652 жыл бұрын

    You are well spoken and very straight to the point. You are very good!!!!! Great video

  • @AfzalHussein

    @AfzalHussein

    2 жыл бұрын

    Thank you!

  • @weizenconnoisseur
    @weizenconnoisseur3 жыл бұрын

    Awesome Video as always! Except the missing numbers or a table to sum it all up😉

  • @mayglencaliguidjucommadron9295
    @mayglencaliguidjucommadron92953 жыл бұрын

    Thank you for sharing this video for insfiring people like me

  • @damiengautrot9230
    @damiengautrot92303 жыл бұрын

    Interesting ! A similar video about careers in Asset Management companies VS careers in Private Banking (wealth management) would be great!

  • @user-qe8qj6ox2b

    @user-qe8qj6ox2b

    3 жыл бұрын

    Yes I was going to ask him the same thing!

  • @miladrezaei2243
    @miladrezaei2243 Жыл бұрын

    thank you, i helped me a lot

  • @johnchrist8089
    @johnchrist80893 жыл бұрын

    Super useful video! Can you make a video for M&A division of investment bank? I think you have made many awesome in-depth videos for all the other divisions except that!

  • @yuvigemini
    @yuvigemini3 жыл бұрын

    Very Informative One

  • @NITAMKUMAR
    @NITAMKUMAR3 жыл бұрын

    Dear... I liked your information.

  • @anomalocaris7436
    @anomalocaris74363 жыл бұрын

    You should do a video on working at domestic investment banks/firms vs foreign investment banks/firms

  • @zakiii3913
    @zakiii39133 жыл бұрын

    Please do a video on investment research roles vs IB

  • @hjkio7029
    @hjkio70293 жыл бұрын

    Hey Afzal! Nice video. Can you make a video on new criteria of CFA?

  • @God_emperor_Doom
    @God_emperor_Doom6 ай бұрын

    Thanks bruh . I got easily understood the difference. But I think they are very hard working jobs

  • @UA7123-
    @UA7123-3 жыл бұрын

    Should of differentiated discretionary/fundamental and quantitative/systematic hedge funds as the work is quite different and the latter being more tech focused 👍🏽

  • @nancyma1332
    @nancyma1332 Жыл бұрын

    sit around until stupid o'clock. i feel this

  • @marialeonorcobo8962
    @marialeonorcobo89623 жыл бұрын

    Thank youuu

  • @monisahmedrizvi1697
    @monisahmedrizvi16973 жыл бұрын

    Hey love your videos can you do one about quant developer and what you need to get in a quant developer position

  • @aishwaryamaggi7439
    @aishwaryamaggi74393 жыл бұрын

    Hey just out of interest, you should do a video on the demographics of your viewers as I'd be keen to see the age and gender breakdown. Gender specifically because the finance industry can be seen as male dominated. Thanks!

  • @Jess-vr9tz
    @Jess-vr9tz3 жыл бұрын

    When you say you can break into a hedge fund at specific trading desks, which desks see the highest transitions into these HFs?

  • @kanthkumar1726
    @kanthkumar17263 жыл бұрын

    Can you make a video on investment consulting and management consulting ?

  • @mhievhenrao6121
    @mhievhenrao61213 жыл бұрын

    3:15 ,this is Malaysia. Malaysian citizen here

  • @cmpbl3151
    @cmpbl31513 жыл бұрын

    Afzal, do you know if industry placements can lead to grad offers?

  • @nasirulhaque8554
    @nasirulhaque85543 жыл бұрын

    Hi,i want to know which country is better for finance career like Australia, uk and usa?

  • @coreyschramm5390
    @coreyschramm53903 жыл бұрын

    Would it be easier to get into S&T at an investment bank, then go to hedge fund. Rather than go into traditional IB (m&a and ipo) then hedge fund. Thank you for your videos!! I’m a freshman college student looking at finance and these are really good videos that explain finance beyond the traditional banking route.

  • @mattbeninati807

    @mattbeninati807

    3 жыл бұрын

    no it is not easier than going from IB. But it is possible. The skill sets are different. You dont become an expert in valuation in S&T like you do in IB, and you gain industry specific expertise. It easier as a trader than a sales person though.

  • @TQT240295

    @TQT240295

    3 жыл бұрын

    Depending on the type of HF you wanna break into. If it's a macro HF, then S&T. If it's a quant HF, then you probably need quant experience at a relevant trading desk. If it's a merger arbitrage HF, then you need M&A background. If it's a distressed HF, then you would need restructuring experience.

  • @naseempatel5120
    @naseempatel51203 жыл бұрын

    Love your vids, keep it up! Had a quick question about whether it would be worth me applying for sales and trading graduate scheme for the next intake. I graduated from UCL in maths, currently working as a programming developer doing actuarial modelling. I heard it’s pretty hard to get in to front office roles without prior relevant internships. Do you think my actuarial modelling experience will make me stand out when applying or will people with relevant summer internships have a greater change. Will appreciate a reply, even if it’s a quick yes or no. Thanks!

  • @BrainyFinance

    @BrainyFinance

    3 жыл бұрын

    With your highly technical background I would try firms like Two Sigma, Winton, Marshall Wace etc. A dear friend of mine joined Two Sigma just after his PhD, with no internship. Good luck!

  • @jacknuttall7256
    @jacknuttall72563 жыл бұрын

    Private Wealth Management vs Asset Management..

  • @alfiearmstrong
    @alfiearmstrong3 жыл бұрын

    Comparison with corporate law would be good

  • @maxwulz9283
    @maxwulz92833 жыл бұрын

    Whats the Name of the City in the first secounds of the Video?

  • @akz4714
    @akz47143 жыл бұрын

    PLEASE make a video specifically about wealth management and their salaries

  • @KarunaPreetiBaraKaku
    @KarunaPreetiBaraKaku3 жыл бұрын

    Isn't hedging also done by the treasury of corporate investment banks?

  • @Lemzino
    @Lemzino3 жыл бұрын

    Would you go back into IB? 👀

  • @MOON-zo3ik
    @MOON-zo3ik3 жыл бұрын

    What education is required to start a hedge fund business?

  • @ssajid40
    @ssajid403 жыл бұрын

    Do you have a video on Crypto currency?

  • @62hoboguy
    @62hoboguy2 жыл бұрын

    Can someone explain face time culture? 11:17

  • @jondash2939
    @jondash29393 жыл бұрын

    Can you talk about the competitiveness of apprenticeships and how to get the best chance of sucess. Thank you

  • @luqmanshakeel8926

    @luqmanshakeel8926

    3 жыл бұрын

    Have you applied to any this year?

  • @joshdawo919
    @joshdawo9193 жыл бұрын

    Hi, what would you recommend I do to best improve my chances of gaining insight weeks and internships next year, seeing as I didn't get any spring insight weeks. I am studying Accounting and Finance at the University of Birmingham currently in my first year. I have a huge passion for the industry and wonder if missing these weeks was a big loss to the potential of my career path. Thanks in advance.

  • @habibtalukter5895

    @habibtalukter5895

    3 жыл бұрын

    hi - I graduated in finance last year with a 2.1 from sussex uni. I did an 8 week internship with icap (brokerage and not ib) in aug-sept after my second year of studies. I got 52% in first year which is shit. I secured my internship through my uncle being good friends with a broker at icap, I still had to submit a cv and interview for the position but I got it. missing your spring weeks doesnt matter honestly. internship postings dont care about experience because they exist for those with zero experience. If I were you id ask family and friends if they know anyone who works in finance. if they do contact them, if not create a linked in and try and connect with people in your chosen field. Then ask these people if their firm as any internship opportunities, if they dont, ask them if they know anyone who works for the company at which internships are advertised. It helps to know who the hiring manager of an internship is (human psychology will favour applicants whom the hirer knows (of). Create a solid cv and ask your uni careers team to check it for you, AND go to topcv.com and subit it there. then apply to many internships, try doing at least 1 a day - BUT each CV needs to be tailored to each internship - www.forbes.com/sites/kathycaprino/2019/03/23/how-to-write-a-resume-that-passes-the-artificial-intelligence-test/ this link will explain how to do it.

  • @marzinho407

    @marzinho407

    3 жыл бұрын

    @@habibtalukter5895 Hey man do you have IG? If not, do you have any other social media platforms we can talk on?

  • @TallunePlayzMc

    @TallunePlayzMc

    3 жыл бұрын

    @@habibtalukter5895 I go to the same uni. Just wanted to ask how hard the tests are during 2/3rd year

  • @habibtalukter5895

    @habibtalukter5895

    3 жыл бұрын

    @@TallunePlayzMc all tests are hard if you dont prepare. some modules are easier than others. accounting for managers (yr 2) was the hardest imo. if you keep up with the weekly lectures and seminars (harder than it sounds) and revise like at alevel for a month for each exam youll easily get a 2.1

  • @Charlie0311
    @Charlie03113 жыл бұрын

    Random question. While you were at Goldman sachs, what was the biggest bonus you/someone else received? Great video 👍

  • @raysshine3504
    @raysshine35043 жыл бұрын

    Hey Afzal you know in trading desks at investment banks how do they get clients and what if I want to be a client ?

  • @Jay-bq6pz
    @Jay-bq6pz3 жыл бұрын

    Is pay between front and back office in an IB significantly different?

  • @Charlie0311

    @Charlie0311

    3 жыл бұрын

    Yes, there is a vast difference.

  • @Jay-bq6pz

    @Jay-bq6pz

    3 жыл бұрын

    @@Charlie0311 care to elaborate, go in depth?

  • @walimogalia3324
    @walimogalia33243 жыл бұрын

    You're videos are great, but you make too much confusion between S&T and Investment Banking. For example they are less and less Traders in Hedge fund, it's mostly Quant Fund

  • @blainedelaney482
    @blainedelaney4823 жыл бұрын

    is it viable to get into hedge funds or PE from asset management instead of Investment banking?

  • @hamzabsahin
    @hamzabsahin3 жыл бұрын

    Hello Afzal! What do you think of Warwick Business School in the IB or the general corporate world? Is it well respected/a target school? Thanks in advance :)

  • @Charlie0311

    @Charlie0311

    3 жыл бұрын

    Yes, definately a well respected University. Many investment banks recruit from there.

  • @tyleredwards8694
    @tyleredwards86943 жыл бұрын

    What would you say is easier to get into, M&A or the trading floor, or is equally competitive. Thanks

  • @Phiness4

    @Phiness4

    3 жыл бұрын

    I'd say getting into M&A IB is slightly harder to get into compared to S&T. M&A is slightly more demanding, competitive and higher pay. It's one of the more center-focused groups of an investment bank.

  • @RandageJr

    @RandageJr

    3 жыл бұрын

    Good grades, extracurricular activities and networking. Also strong CV and Cover Letter

  • @jameljeanjacques8511

    @jameljeanjacques8511

    3 жыл бұрын

    M&A is for ?

  • @tyleredwards8694

    @tyleredwards8694

    3 жыл бұрын

    @@jameljeanjacques8511 mergers and acquisitions

  • @jameljeanjacques8511

    @jameljeanjacques8511

    3 жыл бұрын

    @@tyleredwards8694 thanks

  • @billdolphin4605
    @billdolphin46053 жыл бұрын

    I'm in the middle of a engineering degree. I'm looking at applying to a IB internship would i still have a chance of getting accepted.

  • @raysshine3504
    @raysshine35043 жыл бұрын

    Hedge fund

  • @TheTallicafan
    @TheTallicafan3 жыл бұрын

    14:10 Could not fathom why somebody would move from a Hedge Fund to consulting.

  • @hamzabsahin

    @hamzabsahin

    3 жыл бұрын

    Why so?

  • @TheTallicafan

    @TheTallicafan

    3 жыл бұрын

    @@hamzabsahin More hours, less money, less prestige, less interesting work (coming from a current MC). Especially now with no travel perks consulting has lost a lot of its value proposition.

  • @ThomasFoolery8

    @ThomasFoolery8

    2 жыл бұрын

    @@TheTallicafan appreciate the honesty.

  • @ManifyDa
    @ManifyDa3 жыл бұрын

    not a fan of background music

  • @SS-ih5ek
    @SS-ih5ek2 жыл бұрын

    "until stupid o'clock" hahhah

  • @angelamark6069
    @angelamark60693 жыл бұрын

    I tried trading on my own but it only left chasing shadows

  • @imicca
    @imicca3 жыл бұрын

    no you dont need to work in Investment banking before hedge funds

  • @eddierosario1537

    @eddierosario1537

    3 жыл бұрын

    Exactly majority of people never worked in investment banking

  • @imicca

    @imicca

    3 жыл бұрын

    @@eddierosario1537 yeah I dont get why he said that, its just not true today, even last year.

  • @demayoreignsamanthaloise4729
    @demayoreignsamanthaloise47293 жыл бұрын

    RJVX12 algorithm is the best, there is no point in arguing with this

  • @annajones9701
    @annajones97013 жыл бұрын

    If you can raise money and have decent amount of money just set up your own hedge fund.. remember most hedge funds fail and underperform basic tracker funds or mutual funds

  • @weizenconnoisseur
    @weizenconnoisseur3 жыл бұрын

    For the Algorithmus

  • @sofuluy1357
    @sofuluy13573 жыл бұрын

    Why worry about cryptocurrency quotes if there is RJVX12 algorithm?

  • @davontawilliams3958
    @davontawilliams39582 жыл бұрын

    I just want to be a billionaire 😒

  • @loser3357

    @loser3357

    2 жыл бұрын

    Ok 👌

  • @davontawilliams3958

    @davontawilliams3958

    2 жыл бұрын

    @@loser3357 you gonna make me one 🥺?

  • @awwa8923
    @awwa89232 жыл бұрын

    Corporate slave vs. Corporate slave. There, fixed your title.

  • @Mroka729
    @Mroka7293 жыл бұрын

    Both entirely pointless industries

  • @btsedit7193
    @btsedit71933 жыл бұрын

    RJVX12 algorithm is my choice, i dont worry about BTC rates at all

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