Young financial pros have been given the same advice for years: join an investment bank out of school, work your tail off for three to five years, and then pick your head up and look to leverage your experience in a different career. The problem, as some in the industry have told us, is that exit opportunities for investment bankers are fleeting, particularly for those looking to join the buy-side.

Hedge funds in particular are difficult destinations to conquer for inquiring investment bankers, mostly due to the fact that there are a limited number of seats and a long list of people looking to fill them. Still, a select few each year successfully make their way from banking to the hedge fund world. How do they do it? In short: it’s not easy.

The trouble for most candidates involves the very nature of investment banking. It’s a wide-ranging occupation that covers dozens of industries in dozens of capacities. “People coming out of investment banks have a broad array of skills that aren’t specific to one niche,” said Evan Lerman, principle at IJC Partners, a Wall Street search firm. “That’s a big sticking point for buy-side firms that want specialization. They want people who are the best of the best in covering one sector.”

Avoiding being a jack-of-all-trades and a master of none can actually start before you ever enter an investment bank, Lerman said. “The top 10% at the top schools get offered the sexy stuff,” he said. “They can cherry pick where they want to work because they’re getting multiple offers.” Others tend to fill holes, and don’t get the specialized experience that buy-side firms look for, Lerman said.

While it’s hard to find roles on the sell-side that are similar to those on the buy-side, there are a few, according to John Breault, president & CEO of Breault & Smith LLC., an alternative investment recruiting and consulting firm. Liquid roles, mostly, which offer the depth and broadness that hedge funds desire. That said, if you are trading at a bank, some hedge funds may question how well you would do without all the infrastructure and assets that come with a bulge bracket bank. You’ll need to demonstrate your track record and explain how it would carry over to the buy-side.

Outside of managing capital, there are a few other sell-side roles that hedge funds may lock on to: investment analysts, quants, developers and people with a business development background, to name a few, Breault said.

What else you can do

If you’re not already on a path to building an enticing buy-side resume, there are a few things that you can do to help your chances. Figure out who in your bank does what you want to learn and volunteer to help them after your normal workday is over, or on holidays and weekends, said Breault. “Your initiative will help you at the bank and with developing the skills you need for your future hedge funds role,” he said.

You can also rework your traditional investment banking resume to be more alluring to hedge funds. Points to concentrate on include examples of being different, having conviction, passion and confidence, and doing the right thing, Breault said. Personality, it seems, is more critical on the buy-side.

Entrepreneurialism can also be key, he said, as well as the ability to work in a team, communicate clearly and quickly, and be hands-on. Highlight these things on your resume.

You’ll also want to learn the culture of different firms and go after ones where you would fit. Culture is much more critical on the buy-side than the sell-side.

Be passionate

At the end of the day, hedge funds want just one thing. Someone who eats, breathes and sleeps investments. “They want guys who would work a 14-hour day at a bank and then spend their free time coming up to speed on the market because they love it” Lerman said. “For 99% of the people, it’s just a job. Hedge funds want the other 1%.”

“Sometimes people love what they hope to do so much it becomes something like a passionate hobby,” Breault added. “Read every book on it. Hang out with people who do what you want to do. Join industry associations and go to the meetings.  Volunteer to organize meetings or otherwise contribute,” he said.

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