What can I do with a Master of Finance?

Investments

Depending on the investment organization, a firm can be involved in any one or more activities in an organization. Larger organizations are often involved in these practices. A key to employment on the investment management track, besides excellent analytical skills, is cultural fit. As you prepare to interview with a firm, it is important to understand their culture, how you fit in, and what they look for because these factors are critical to placement.

Hedge Funds

Hedge funds are a way to invest in assets. The private investment partnerships invest in a variety of assets. The biggest differences between investment managers and hedge fund managers are the ability to short investments, as well as leverage the portfolio. So, although they may invest in stocks and bonds, their ability to structure the portfolio differently creates a different class of investors. They typically have a much shorter holding period for their investments, so if you prefer a “faster pace,” a role in a hedge fund may be preferable.

Capital Markets / Investment Banking

Capital markets is the broad description of providing equity and debt capital to corporations. Many of the firms involved in this activity are investment banking firms, although the field is broader than this subset. Investment bankers underwrite debt and equity securities for corporations.

They also work on purchase and sales deals for corporations by creating the actual deal and structuring the financing. Investment banking firms often prefer undergraduate students because of the tremendously long hours required of new associates, but a willingness to work long hours and the ability to manage analytical work completed in a focused manner will indeed help you in placement. Fit is important, but the desire to work long and hard is key.

“Sell Side”

The sell side is often what we refer to when discussing the institutional brokerage business of the Wall Street firms. The three main types of positions at such a firm include research analysts, research sales, and sales trading. 

The analysts on the sell side are a bit different because communication of their research to clients is a critical element of the position. Research sales
professionals work with investment management firms to be the liaison between their organization and the research they provide. The traders work with investment management firms to fulfill their trading needs.