Predicament going into Sophomore year
So I go to a semi/nontarget (think UVA/UT Austin/Georgetown/Notre Dame) and have an internship at a top LO (D&C/Fidelity/Harris/RCG/Wellington/T. Rowe) for next summer. Definitely do not want to go the banking route so I am confused between two options:
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Intern at LO soph summer, return junior summer, then go FT
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Intern at LO soph summer, successfully recruit for L/S (Citadel/P72 etc., know this is a difficult ask), if get the return from L/S take that FT.
I much prefer the investing style of the LO but the comp difference is significant (albeit with low turnover at the LO). My question was how much does pay really cap out at LOs? Is there any possibility to be making multiple million $ as a PM or no? If the pay ceiling is much higher, I will take the L/S because I back myself to do well despite the high turnover.
Just really confused going in because my school does not really have many HF kids, 90% will do banking for the optionality but I've loved the public markets since high school and would not do anything else out of college. Apologies in advance if any of this came out as snobbery or obnoxious, just looking for advice.
bump
Congratulations on such great placement. Pay at top LOs (especially the private ones - Capital, Wellington, D&C) for investors can be very generous. You can certainly make the amount you mentioned as a PM, if you get there. As an analyst, if you are good, you can get to low 7 figures - again, at the top, private LOs. As an early-career professional, I would encourage you to maximize your learning and growth, instead of being too fixated on long-term comp (albeit, it is still important).
Thank you! Can I PM you by chance? I was not really familiar with the LO space before this summer so I quit a few other LO processes I was in after I got the offer. Want to know how you would rank them in terms of learning, upward mobility etc.
What do you mean by this? If you're talking about the sophomore internship comp, that may not be representative of full time comp. the top quintile LOs should pay you roughly $130-190k TC as a first year research associate. Also, at top shops your comp ceiling as a senior analyst / pm can be quite high, but it takes longer for comp to ramp vs. HF (but with much less career instability)
They said the summer internship salary is prorated to what FT will look like. If you do the math its $120k base (not sure abt bonus)
What should be remembered is you’re just a sophomore - you have no idea yet what style you actually like yet. The compounder, LT style sounds great on paper, everyone on this forum/fintwit loves ShawSpring, Abdiel, etc, but it’s often not as fun (extremely boring/repetitive) in practice.
What to do isn’t actually that complicated - try to get a junior internship at Citadel/P72 as well as the big LOs and see who bites. Then you actually do the internships and see what resonates more
On pay, lol. If you love fidelity and take Citadel for the higher base salary you’re a sucker. It’s about longevity
And is this predicament in the room with us now?
Congrats on Georgetown.
Not GT :) I wish tho
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