Breaking into large HF from BB trading analyst role

Hi everyone,

There seems to be ample information regarding the process behind moving from BB IBD to PE megafunds on this forum, but a dearth of it with respect to the process behind moving to a large HF (Soros, Pequot, Caxton) in a junior PM/junior trader role, from a BB S&T analyst program.

Does anybody have information on how this works? Connections? Headhunters?

 

It works the following way, you prove yourself by making millions for the bank and HF will take you gladly. Otherwise, maybe good opportunistic networking can help.

Do what you want not what you can!
 
Best Response

Because those firms you mentioned usually recruit macro traders at the senior level (VP/MD/Global Head level), not analysts. Unlike moving from a BB to a HF in a valuation based role, for a PM type role, you need a track record, and you don't get there unless you've survived on the sell side for a long time and gained a strong reputation.

e.g. http://www.linkedin.com/pub/stan-sokolowski/7/18a/427 http://www.linkedin.com/pub/francesco-cafagna/8/724/720 http://www.linkedin.com/pub/won-choi/14/14a/39a http://www.linkedin.com/profile/view?id=46018577

 

[quote=Awon Eleyi Awon Eleyi Won Bad Gan]Because those firms you mentioned usually recruit macro traders at the senior level (VP/MD/Global Head level), not analysts. Unlike moving from a BB to a HF in a valuation based role, for a PM type role, you need a track record, and you don't get there unless you've survived on the sell side for a long time and gained a strong reputation.

e.g. http://www.linkedin.com/pub/stan-sokolowski/7/18a/427 http://www.linkedin.com/pub/francesco-cafagna/8/724/720 http://www.linkedin.com/pub/won-choi/14/14a/39a http://www.linkedin.com/profile/view?id=46018577[/quote]

Ok, that's helpful information. So where would you say there opportunities for junior PMs etc? My impression was that some places like to take you early (ie after analyst stint) so that they can teach you how to be 'their type' of investors

 
MJP338][quote=Awon Eleyi Awon Eleyi Won Bad Gan]Because those firms you mentioned usually recruit macro traders at the senior level (VP/MD/Global Head level), not analysts. Unlike moving from a <span class=keyword_link><a href=//www.wallstreetoasis.com/finance-dictionary/what-is-the-bulge-bracket-BB>BB</a></span> to a <span class=keyword_link><a href=//www.wallstreetoasis.com/finance-dictionary/what-is-a-hedge-fund-HF>HF</a></span> in a valuation based role, for a PM type role, you need a track record, and you don't get there unless you've survived on the sell side for a long time and gained a strong reputation.</p> <p>e.g. <a href=http://www.linkedin.com/pub/stan-sokolowski/7/18a/427 rel=nofollow>http://www.linkedin.com/pub/stan-sokolowski/7/18a/427</a> <a href=http://www.linkedin.com/pub/francesco-cafagna/8/724/720 rel=nofollow>http://www.linkedin.com/pub/francesco-cafagna/8/724/720</a> <a href=http://www.linkedin.com/pub/won-choi/14/14a/39a rel=nofollow>http://www.linkedin.com/pub/won-choi/14/14a/39a</a> <a href=http://www.linkedin.com/profile/view?id=46018577[/quote rel=nofollow>http://www.linkedin.com/profile/view?id=46018577[/quote</a>:

Ok, that's helpful information. So where would you say there opportunities for junior PMs etc? My impression was that some places like to take you early (ie after analyst stint) so that they can teach you how to be 'their type' of investors

Not aware of any large respectable funds that do that. I think you're getting mixed up between the typical career track of people in distressed/long short/merger arb funds (valuation based. Usually worked in IBD, ER, or a valuation based prop desk/group at a BB), to those in macro funds (experience, market knowledge and expertise based. Usually worked in FX/EM/Commods/Rates on the sell side, or in a related prop desk/group at a BB). At the former, people can make the jump over after analyst stints. At the later, people usually need a much more established track record before making the jump.
 

How does the promotions work? Like in IB it is usually 2/3 years analyst then promotion to associate then another 3 years then VP.

Is it like that too in S&T or is it based more on merit (ex. you earn a certain amount for the firm then you get promoted etc.)

 

There is no such job as junior PM in most cases. These funds have investors who expect their money to be invested by people who have proven track records and serious experience...its not a training ground where they give 26 year old kids capital and tell them to "get after it". At the PM level these places hire "finished products" not "works in progress".

Its not unheard of for PMs to work their way up within a firm from other jobs but its much much more common for PMs to be hired with resumes such as above.

 
Bondarb:
There is no such job as junior PM in most cases. These funds have investors who expect their money to be invested by people who have proven track records and serious experience...its not a training ground where they give 26 year old kids capital and tell them to "get after it". At the PM level these places hire "finished products" not "works in progress".

Its not unheard of for PMs to work their way up within a firm from other jobs but its much much more common for PMs to be hired with resumes such as above.

Thanks for the post. What do you mean by "work their way up within a firm"? Which 'other jobs'?

 

you should ask your ex-boss what opportunities for advancement the role entails... in a nice way. if you're supposed to be his right arm and learn as much as possible in the seat, cover for him, run PnL, etc. then you're not departing the junior trading role as much.... if you're doing nothing more than paperwork, then it's not worth it.

you can learn a lot at your bank, but moving to a strong hf is an incredible opportunity -- particularly if your boss was somewhat of a mentor to you.... nice to go private with the pendulum toward so much comp regulation too.

who is john galt?
 

Explicabo earum quos itaque excepturi quaerat. Et voluptatum alias et expedita. Est minus consectetur dolores commodi atque. Corrupti magnam qui velit dolorem.

Velit sequi natus autem facere. Non quis nulla et nihil et porro. Et dolore voluptas et eum. Est impedit sed enim autem.

 

Similique amet quas non qui ut atque consequatur. Consectetur nesciunt voluptate optio corporis voluptas reiciendis. Et possimus rerum laboriosam quibusdam enim. Qui harum ea porro id consequatur. Iste velit molestiae ipsum mollitia rerum. Et in alias praesentium voluptatem. Sed et omnis unde harum et corrupti.

Sequi reprehenderit facilis ut alias qui reiciendis. Maxime aut dolores quis impedit eveniet ipsum.

Cupiditate et explicabo eum. Quisquam deleniti facere rerum totam sed voluptatem. Et eos iure quo et ea.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
CompBanker's picture
CompBanker
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
DrApeman's picture
DrApeman
98.9
9
kanon's picture
kanon
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”