Intern way over my head
So I am an intern at a small mutual fund (about a billion under management). I was researching some high yielding investments and I came across REITs and MLPs.
The PM I work for likes energy (we live in Texas). He also likes construction so he is now buying both MLPs and REITs.
He liked my analysis of the two asset classes. He is now putting a few million into each.
What happens if these two things take a dive as they have pulled back recently. I'm pretty nervous as it was all me that suggested them and I am freaking out that they won't perform well.
The PM makes the ultimate choice.. I'm sure he didn't rely solely on your due dilligence. If he did, then he is clearly violating his fiduciary duty towards investors.
If the investments tank, then noone will be happy, but it's the PM's duty to make wise investments.
I'm sure you discovered that MLP's and REIT's are very diverse. Some will be better positioned than others in light of rising interest rates (or fear of). As pitbul said, the PM probably has a thesis / time horizon / certain goals. Don't sweat it...you're an intern.
I think this can only help you. If the investments lose money he'll think, "what the hell, he's only an intern."
If they make money, he'll think, "Gee, this guy's got some ideas. Let's have him take a look at some more stuff."
And don't worry, I'm sure he's looked closely too (or had another guy check your analysis) before pulling the trigger.
He definitely did his own due diligence on the your ideas, no way he went in blind. You're an intern, no matter which way the investments go you presented analysis with which he agreed. It can only be good.
This is better than you doing a bunch of analysis, and he ignores it, no?
Yeah it implies he agreed with your decision. If he does nothing/doesn't act on it then it implies you were wrong. Just relax, and make sure to put this on your resume. Nice work
Your seriously lucky to be in that situation. You can put your experience on your resume. On one hand, very few people outside of AM will even ask how they preformed. On the other hand, if they preform well you get to brag, only when asked, to PMs.
REITs got crushed this/last week because of the Fed...and I'm judging you're still okay.
Debitis ut est eum itaque voluptatem. Magnam voluptates repellendus ad vero. Corporis sint minus earum corrupti dolorem labore. Repudiandae ut eligendi ducimus et velit eos occaecati repellendus. Nobis voluptas et veritatis error tempore odit et. Tenetur ipsum recusandae perferendis natus voluptas deleniti.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...