Foremost, I thank God for His Grace and Mercy over us.

Secondly, I want to quickly appreciate the positive impact of the following nairalanders: Seun, Ajanlekoko, Yamakuza, T22, Deenee, Nitrogen, Bookface, sawyer89, Odunnu, Jarus, Admitwitscholar, and others. May the good Lord prosper your ways as you have been helping people in one way or the other.

Like we all know, the field of finance is vast and complicated and one could easily get lost along the line. This thread is aimed at guiding, directing and perhaps helping prospective porfolio managers to achieve their goals.

Professional portfolio managers in the house! Please, what advice do you have for those that are aspiring to become one? Finance experts and the rest, we are waiting for you all! please contribute....

Okay, let's go through Mr T22 style of becoming a portfolio manager:

How to become a portfolio manager? T22's style and strategy...

I am not saying you should follow my style, but I guess my style should hopefully serve as an illustration on how one can become a portfolio manager. The way I hope to become a portfolio manager is to start out in a capital market company that specializes in equity and debt capital markets. First, I would work in equity research and analysis and value stocks and familiarize myself with different industries and different sectors and with companies listed in these industries and sectors. I would learn what drives their share prices, both technical and fundamental drivers, and I would also learn how these companies do their businesses and how they earn profits and how they cut costs and how they grow revenue and how they diversify into other income generating areas. In essence, I would spend time building a very deep understanding of the stock market. This should take 4-6 years at the minimum.

The next step, the second step, would be to change departments and move from equity capital market to debt capital market. Essentially, I would move from being a stock guy to becoming a bond/fixed income guy. I would do this for several years and understand the intricacies of fixed income research and analysis. I would learn about corporate and government bonds and many other fixed income instruments. This should take a minimum of 3-5 years to achieve. It would take a shorter time, at least for me, because fixed income analysis is more of a science than art. Once learnt, it becomes a part of you and stays with you as you continually upgrade yourself. However, equity analysis is more subjective in nature and this lends it to being less scientific in nature. Again, this is my view.

After successfully doing first and second steps, I would move to the department of risk management. I would spend less than 3 years here because steps one and two would have exposed me to risk management tools and so my learning curve would be much steeper while working in the risk management. So, in risk department, I would expose myself to hedging tools, including swaps, derivatives, options, futures and everything I can expose myself to within the shortest time possible. I normally would not exceed 3 years in this department.

Armed with solid hands-on experience in equity and debt capital markets, risk management, derivatives and co, I would go and market myself to big hedge fund companies or to high net worth individuals who are willing to have me manage their billions of dollars funds. I will charge 2% of the managed funds and 20% of the returns I am able to generate in a given financial year. Without mincing words, I would become the next Soros

Education that could help---
First, BSc Economics/Finance/maybe Accounting/Engineering/Physics/Mathematics

Then, try to enter an asset management company like ARM (asset management coys are essentially buyside) and learn about capital markets securities (debt and equity) as much as you can. If you can avoid Vetiva, IBTC and co, then please do. They are sell side firms and may not properly further your ambition of becoming a portfolio manager. However, some of these companies have a buyside arm, so you may select to work in buyside which is the perfect place for an aspiring portfolio manager. I myself started out in a quasi buyside company.

Okay, spend close to 3 years with the buyside firm and make sure you pass CFA level 1 and 2, then BAIL for graduate studies at a Top School. Either do an MBA or do an MFE. While doing graduate studies, take CFA levels 2 and 3 and pass them. With your very relevant experience, top notch education and zeal, you will have positioned yourself to getting hired by a company where your aspiration of becoming a portfolio manager is most likely to become a reality.

I wish you good luck.

Sincerely,

T22

NB: Just go learn and become an expert (or something near that) in C++ and/or C# and/or C plus Excel and/or VB. We hardly use all those CCNA acquired knowledge in finance. We are finance experts, not some IT gurus, although I agree that a sound knowledge of IT is always priceless.


Who is next?

hello. long time.


as per the topic, i think T22 has dealt with it very well, thats why others are probably not keen to add to it.

i may be wrong though.

yamakuza: hello. long time.

i just wanted to acknowledge your post/greeting/thanks.

as per the topic, i think T22 has dealt with it very well, thats why others are probably not keen to add to it.

i may be wrong though.

Yes, long time indeed! Thanks sir.

i will love to be part of this discussion. I am a final year student of Accounting, also with ACA. my future goal is to become one of the best hedge fund manager in the world.
i have been researching for information on how i will get there.
i will like to have mentors in this field who can guild me on how to achieve this dream.
I intend working with an investment firm as soon as I get out of School, also planning to write ACCA and CFA as soon as posible.
If you can be of help to me, i will love to meet you.

blessedtj: i will love to be part of this discussion. I am a final year student of Accounting, also with ACA. my future goal is to become one of the best hedge fund manager in the world.
i have been researching for information on how i will get there.
i will like to have mentors in this field who can guild me on how to achieve this dream.
I intend working with an investment firm as soon as I get out of School, also planning to write ACCA and CFA as soon as posible.
If you can be of help to me, i will love to meet you.

Well, God will help us all. The only thing I can do to help you right now is to provide you with this link: www.arm.com.ng
Click on the career section and then read up the AYTP(apply if you think its necessary). Note that, ARM is a finance company that specializes in assets and resources manangement, am sure it will help you in your career.
Please don't wait till your graduation because that would be a mistake. Let me know how far.

Good luck

thanks LAMba, i have already apply for the programme. i am waiting for them to call me for the interview.
if you have an idea on how I can gain the job, pls connect me.

blessedtj: thanks LAMba, i have already apply for the programme. i am waiting for them to call me for the interview.
if you have an idea on how I can gain the job, pls connect me.

ooops! hmm no sir.

Good luck