job choice

[semtex]

A hard choice.. Currently I have two offers at hand.

Both at NYC, in fact, two offices are one block away.

Famous investment bank, senior developer, title manager, base 95K + 20% bonus. Project is a key application for IB business. Working hour 9-6.

One year history hedge fund, portfolio analyst, base 100k + 50% plus bonus(depends, but 30% is guaranteed). Working hour 9-5.

So one is tech path, stable. other is business side, with bigger pay and risk.

personal background, 35 years old, CS master, 5+ years developer in financial field.

is 35 too old to jump in business side. do I have to take a MBA degree?

I appreciate your advise.

Thanks first.

[semtex]

more details.

IB, 6% 401K match + pension
hedge fund, 6% 401k match + free health insurance+ free lunch

[macdaddy]

Semtex, this totally depends on your personality and your goals. Going the hedge fund route, you could be worth multi millions at age 40. Or you could be unemployed. Going the IB route, it seems like you will plod along with much less risk. So the answer depends on a lot of information you didn't provide. Family? Savings? Appetite for risk? ER goals? The hedge fund will probably be a lot more fun if you enjoy working with smaller groups in a less formal environment. I have a lot of friends working at bulge bracket banks and hedge funds are still a very desired destination for them. But if ER is your goal and you are within shooting range, then what's the point of spinning the wheel.

[brewer12345]

The hedge fund is definately higher risk, higher reward. *I think you have to choose based on the risk/reward trade-off you can live with.

FWIW, I would try the fund. *Worst comes to worst, you get another job somewhere. *The market is good enough that it is worth trying to make some hay while the sun is shining.

[semtex]

Thanks, macdaddy.

More details.
Married guy with one kid. Whole family net worth 200k+60K 401k. No debt. Renting. My wife has a very stable job, 90k+5% bonus.

For me, the career potential is most important.

Dead line is next monday(07/10)

[macdaddy]

If you want career potential and you like the guys at the fund then I would go with it over the bank, no question. How big is the fund and how many people work there? If it's > 200 million then you are all set.

[semtex]

hedge fund has around 15 people now. 300M fund. another 500M confirmed in 3 months.

[semtex]

I met 10 guys there, two face to face interviews. Cool guys. All very experienced in the Street(10+ years).

I will be the greeen hand. Support all.

[wabmester]

Go with the hedge fund. Even if it blows up, you'll have new experiences you can leverage down the line. You can always go back to dev work if you hate it.

Although, avoid if it's an international hedge fund. You'll never sleep again.

[semtex]

the fund focuses on credit derivative. Sleepy world, comparing to other strategies.

But my question is my background mainly at tech side, although I worked on the financial field at last five years, including one year at trading floor as spreadsheet developer.

To pursue business career, do I need have a MBA degree or FE? Too old for a old dog to learn new trick? 35 years old.

[brewer12345]

Originally Posted by semtex

the fund focuses on credit derivative. Sleepy world, comparing to other strategies.

But my question is my background mainly at tech side, although I worked on the financial field at last five years, including one year at trading floor as spreadsheet developer.

To pursue business career, do I need have a MBA degree or FE? Too old for a old dog to learn new trick? 35 years old.

Credit derivatives can be a highly quantitative field. If you can do sophisticated modelling and design systems/spreadsheets to do it, you should be fine in the world of derivatives.

Oh, and I would be a little suspicious of the 9 to 5 or 9 to 6 advertised work week.

But I would still go with the fund. Wab is right: the experience will be valuable, especially in the burgeoning field of credit derivatives.

[macdaddy]

You don't need an MBA to trade or develop models for a hedge fund. A lot of people go to hedge funds straight from trading floors at investment banks. An MBA would be a waste of time if that is what you want to do. A PhD in FE would be great, of course. But you can learn what you need to on your own. If they hired you, they must have confidence in you. An 800m fund with 15 people is a great setup, looks like you've set up a great opportunity for yourself. Especially if any of the 800m is committed from educational endowments, it'll probably be very stable.

Did they mention anything about having a carry in the fund in a couple years? If you do well, you should be in a position to profit share a few %s within that time frame.

[semtex]

Thanks a lot to all.

More details. My wife supports my decision. My son too, as long as he has enough candy, a two and half years old smart.

[semtex]

one issue, I have signed on the IB offer letter and mailed out at yesterday. The hedge fund offer poped up this morning. Hedge fund gave me a verbal office one month ago, but got delayed. The reason is CEO on vacation.

Legal problem?

[semtex]

Typo, verbal offer from my agent.

[Nords]

Originally Posted by semtex

The reason is CEO on vacation.

Who'd want to work for a company where:
- The CEO takes month-long vacations, and
- No one can make hiring decisions in the CEO's absence?

[brewer12345]

Originally Posted by semtex

one issue, I have signed on the IB offer letter and mailed out at yesterday. The hedge fund offer poped up this morning. Hedge fund gave me a verbal office one month ago, but got delayed. The reason is CEO on vacation.

Legal problem?

Not likely, IMO, but wise to consult a lawyer if you feel the need. *Not the best path, but I have seen many a situation where someone has reneged on an offer already accepted. *What harm is there to the jilted employer? *They will just go back into their applicant pool. *Just be aware that you will have a bit of a black mark at that employer in the future.

[semtex]

The CEO vacation is what my agent told me. I suspect the true story is that I am not the best candidate and guy turned down the offer at last minute.

How inform my IB agent? He is a nice guy. Hate to say no to somebody.

[brewer12345]

Originally Posted by semtex

How inform my IB agent? He is a nice guy. Hate to say no to somebody.

Pretty much no way he will be happy about losing a commission. I would explain that at the last minute the opportunity of a lifetime came up and you simply cannot pass it up. Be prepared for te full court press to get you to stick with the IB job, since that is the only way the agent is getting his commission check.

[semtex]

I really appreciate all the advise.
After read through all posts, like hedge fund is a good choice. I will hold you guys to take all the responsibilty.*