When it comes to who the hedge fund and mutual fund shops across the country choose to hire, not all college degrees are created equal. According to recently released report from alternative fund database house eVestment, the likelihood of graduates snagging coveted jobs in the asset management field largely depends on the academic halls they emerged from.
eVestment gathered alma mater information from over 35,000 investment analysts and portfolio managers who graduated after 2010 and are employed by some 4,500 mutual funds and hedge funds spanning the country.
Undergrads from the University of Pennsylvania, MBA alums from University of Chicago's Booth School of Business, and those who earned diplomas in 2010 or later from Columbia University stood greater chances at landing asset management jobs, eVestment found. (For related reading, see: 5 Top Business Schools In America.)
Pointedly, Penn’s esteemed Wharton School (both for MBA and undergrads), spawned 1,101 asset management workers – the highest number of combined alumni holding jobs at Goldman Sachs Asset Management (GS), BlackRock Inc. (BLK), Pacific Investment Management Co. (PIMCO) and other industry stalwarts. But Penn’s lead appears to be slipping; while it was the highest asset management seeder practically every year from 1960 to 2004, the University of Chicago owned that honor from 2005 to 2009, and Columbia did so from 2010 to 2014.
Unsurprisingly, Ivy League schools showed well. But non-Ivy League schools did well, too. Boston College placed in the top 10 for total alums and took sixth place when the data factored in undergraduate degrees alone. BC placed seventh when ranked by school size. Incidentally, U.S. News & World Report ranked BC 31st overall. Another notable non-Ivy League performer was Lehigh University, ranking ninth for undergraduate degrees when scaled by school size. Lehigh was ranked 41st overall by U.S. News & World Report. (For related reading, see: Prestigious Colleges With The Lowest Tuition.)
Finally, eVestment also looked at schools with a focus on investment products to learn that Harvard University topped the list for American hedge funds, trailed by the University of Chicago and Penn. Conversely, Penn took first for U.S. equities, trailed by Harvard and Chicago. Penn likewise led the pack for U.S. fixed income, followed by Chicago and New York University.
A list of rankings by overall numbers, size-adjusted, and MBA grads, are as follows:
|Raw Rank||Total Alumni Employed by Asset Managers|
|1. University of Pennsylvania||1,101|
|2. Harvard University||920|
|3. Columbia University||886|
|4. University of Chicago||877|
|5. New York University||810|
|6. Stanford University||470|
|7. Northwestern University||429|
|9. UC Berkeley||373|
|10. Boston College||372|
|1. University of Chicago||877|
|2. University of Pennsylvania||1,101|
|3. Dartmouth College||291|
|4. Harvard University||920|
|5. Princeton University||273|
|6. Massachusetts Institute of Technology||357|
|7. Boston College||372|
|8. Stanford University||470|
|9. Yale University||303|
|10. Columbia University||886|
|1. University of Chicago||720|
|2. Columbia University||557|
|3. New York University||533|
|4. University of Pennsylvania||533|
|5. Harvard University||471|
|6. Northwestern University||234|
|8. Stanford University||182|
|9. University of Southern California||125|
|10. University of Michigan||124|
Personal FinanceThese schools produce the most successful business grads and offer some of the best educations.
ProfessionalsHere are some of the schools that ranked highly in The U.S. News & World Report and Bloomberg Businessweek rankings for accounting programs.
Personal FinanceFind out which college majors give you the best odds of joining the wealthiest percentile of Americans.
Personal FinanceWe list the top paying internships along with the average monthly salary.
ProfessionalsCredentials like on-the-job experience and licenses can be much more important for some financial careers.
ProfessionalsThe salary difference between adults with post-secondary educations and adults without post-secondary degrees isn't as drastic as it once was.
ProfessionalsThe top degrees based on earning potential might not be what you expect.
InvestingHow do bond exchange traded fund (ETF) distributions work? It’s a question I get a lot. First, let’s explain what we mean by distributions.
ProfessionalsStock and bond markets are moving more closely in tandem with each other. Is illiquid real estate the vaccine for this correlation?
ProfessionalsRIAs looking to strike out on their own need to overcome and plan for a number of hurdles.
Many traditional lenders and banks are failing to provide loans. In their absence, hedge funds have begun to fill the gap. ... Read Full Answer >>
A hedge fund manager does not necessarily need any specific license to operate a fund, but depending on the type of investments ... Read Full Answer >>
A hedge fund analyst primarily provides support to a portfolio manager on how to best structure the hedge fund's investment ... Read Full Answer >>
Mutual funds are legally allowed to invest in hedge funds. However, hedge funds and mutual funds have striking differences ... Read Full Answer >>
Obtaining a license as a financial adviser does not require an Master's of Business Administration (MBA) degree. The Certified ... Read Full Answer >>
Unlike a 401(k) or Individual Retirement Account (IRA), mutual funds are not classified as retirement accounts. Employers ... Read Full Answer >>