Wanted to get some thoughts as to a transition from PE to HF.
I joined my current firm straight out of graduation. My vertical is the debt investment arm under a broader umbrella of a firm that also does traditional VC/PE. So think Sankaty Advisors and Bain Capital, Whitehorse Capital and HIG Capital, etc.)
There's some good information on a previous thread (https://www.wallstreetoasis.com/forums/pe-vs-hf-l…) but wanted to see if anyone had any other inputs. Also very interested in comparing lifestyles between the two. While I surely don't mind putting in hours over the weekends, I've come to resent having such an unpredictable working schedule. My thoughts is that your hours will typically be better in an HF given you are working around market hours (which are set) vs working around transaction timing (which are unpredictable).
Thanks in advance.
The unpredictable hours are probably better anywhere when you move up the food chain and have the ability to control the workflow.
True but given the transactional nature and the market-related nature of the jobs, I would assume there would be key differences.
Regardless, I see my VPs and MDs in the office for as long as I am most of the time as well. So not necessarily tied to being able to control the workflow. Even out of the office, they have to control the workflow through their cell phones.
Should I switch from PE to Hedge Fund? (Originally Posted: 03/19/2012)
Hi All, hoping to get some advice.
I am currently at a top Real Estate PE firm. Pay is good (street pay. All-in 300-400K for VP level, just to give you an idea). Hours are good. (8:30-20:00) For foreseeable future, I could have a stable career here. But the problem is, I am not that into real estate...
Instead, I love equity market. I love to research companies. I love to generate and learn how to generate trading ideas. I could get into top 10 MBA programs and try to pursue a career in long/short hedge fund thereafter. However, I just cannot decide whether it would be worth it.
MBA is a big investment. And I know that the chance to join a large hedge fund after that is slim, even with top MBA. I am also worried about the risk to join a hedge fund. I mean here at REPE, I could make very stable stream of cash flow. But in a hedge fund, you know... Rationally speaking, I know I should stay where I am, and take good care of my family. However, that would also mean I need to give up my "dream", which pops up very often.
It's just hard to decide.....any opinions? would appreciate it very much!
Stay where you are, trade your own ideas in your personal account. Works for me. I always wanted to do the S&T -> HF thing, but it didn't work out. Consulting was my backup, but now I really enjoy my work. I scratch the trading itch by trading my account, and it's totally awesome.
If you are married with kids, you need to talk this over with Mrs. Wifey.
If you decide to go this route, you are going to need to start cutting back on your lifestyle at least temporarily. The more money you save now, the more you will thank me when you are living on $150K/year working at a hedge fund.
-You are not buying that new car this year. -No fancy vacations this year. You can go to Florida for a week if it costs something on the order of $5-6K for the whole family. -Your budget for eating out is getting cut to $500/month.
Here's where I think you need to be to make this career change:
1.) Own your home outright. No mortgage. 2.) Have enough coming in in dividends every month to meet you and your family's basic needs. (Food, utilities, gasoline, insurance.) This is your license to tell whichever company you later work for and wind up hating to take a long walk off a short cliff. 3.) Have eight months of cash savings.
When you have 1, 2, and 3, and your family is prepared to live on $150-200K/year for a few years, you can jump to a hedge fund.
i interned at a hf. the owner only makes as most as you are making. and the analyst were making 40k. they were doing l/s strategies.
Try making the jump to HF through networking before pursuing an MBA.
^^ It depends on the hedge fund. At Citadel, the owner makes a bit more than that and you maybe start around $100K. OP would be able to pull down more than that, but he will take a huge cut in pay moving over from PE.
I agree with Manbearpig. Just trade on your own discretionary account. 100k for the mba + the huge pay cut doesn't seem worth it to me, unless you somehow end up at Bridgewater or something through networking.
I think the most important point is that OP has not even addressed whether he is willing to take a pay cut or not. He mentioned that he has a family to take care of.
OP should try to switch without an MBA. I think we can agree on that. But the other point is that OP can cushion the earnings cut if he starts saving now.
Dividend stocks are yielding ~5% right now. And OP probably knows if he can get an even higher sustainable cap rate on real estate. If OP can try to live on a $150K/year salary this year and save the ~$150K (net of tax) balance, he's now got $7.5K/year in dividends (at lower tax rates) to help cushion the loss of earnings. That makes a much bigger difference on $150K/year than it does on $400K/year.
^^
IP, talking about how to live on $150-200k a year? Are there some extra zeroes in there you mistakenly added?
OP: If you absolutely need to be a full-time equity trader and you have reason to believe that you can make a living doing it... then I don't really see why not. It's clearly going to be difficult (or, perhaps more accurately, less easy) for your family if your salary's taking a hit so you can follow your dreams, but... as long as you've got enough for them to live comfortably on, what's the issue?
OP has a family. If you own a 3500 square foot red brick house with a wife, two kids, and a yellow laborador who fetches the paper every morning out in Westchester county, I need to add a zero onto your cost of living. We are also talking pre-tax salaries. That $150K/year means $100K/year after tax.
A $800K house in Westchester means $15K/year in property taxes and probably another $10K/year in maintenance. The utility bill for a 3500 square foot home probably also works out to $300-400/month. Factor in internet + telephone for a family of four and you are adding $200/month; $250/month if you want cable.
So we're up to $32K/year just paying for the house.
Two reasonable domestic or Japanese cars will cost $5K/year to insure and maintain. Double that for European cars.
School fees and books are going to run $2K/kid/year. The train +parking is going to cost at least $300/month; let's call that $4K.
So cars and other non-negotiable expenses bring us to $45K/year.
Food for a family of four? $2000/month, maybe. $24K/year.
College savings (assuming in-state at SUNY, Rutgers or UConn) = $5K/year/kid= $10K/year
Interest and principal repayment on a $600K mortgage? There goes the rest of your savings. After tax, you are just barely breaking even. Maybe after the mortgage interest and property tax deduction (which you can't really count on since the pols are talking about taking it away), you are clearing $5-10K/year in your 401k.
I'm simply going off of where most professionals making $300-400K/year are coming from and the fact that he has kids. You typically have a house worth 2-3 years worth of pre-tax income.
If OP wants to switch to a hedge fund, he needs to move to a $400-500K house OR pay off the mortgage. It will also be helpful to have several thousand dollars a year in dividends to help cushion the drop in income. Either way, you may still need to cut back. I'm just covering the non-discretionary stuff here and you're barely breaking even on $100K/year take-home.
Switching to an HF is going to mean a lifestyle change for a few years. This is something you really need to talk about with your family.
Alternatively, if you can save $2.5 million in your current role over the next five to ten years, you'll have enough to put the kids through school and retire comfortably upstate. Every $100K you clear means $5K/year in inflation-adjusted dividends.
If OP either moved to or had a $400K 2000 square foot house in Connecticut, we cut $15K out of the home's maintenance, utilities, and property tax and another $16K out of the mortgage interest. Now we're looking at about $30K left over for savings and discretionary spending. The budget is still a little tight- I would still like to see the mortgage paid off, $100K of emergency savings in a CD, and some dividends coming in, but OP can provide for his family on a $150K/year income.
Haha Jesus guys. I grew up in a family of four. My dad made maybe $150k pre-tax and my mom didn't work. We live in a nice house that I think was bought for like $300k. Then, when I was in high school, my family started living on far, far less.
Obviously I understand that everybody has their own reference point. If you're yused to $400k per year, dropping to $200k could be painful. And yes, you're family has to be part of the decision. But just wanted to point out, anything above $350k per year pre-tax makes you in the top 1% of the US. Families grow up on WAY less than that all the time - it can be done
Setting aside your household economics, what do do you really have to offer a hedge fund? The only particularly likely scenario I can see would be that a hedge fund would hire you onto a real estate desk but you say you don't like RE, and at the VP/post-MBA seniority level it's hard to make a case for yourself as a "blank slate" for potential employers. Do you have any experience in non-RE finance?
It's extremely hard to get any finance job right now (as I'm sure you know), and at the post-MBA level you'd better either have either a) extreme pedigree, b) directly relevant finance experience, or c) a unique skill-set like a terminal degree in a non-business field that gives you a competitive edge in analyzing companies in a given field. Otherwise, why would a fund hire you over someone who has at least one if not more of those things?
but my kids will go to baruch or some no name community college with cornell aem transfer admission guarantee
i transferred and saved a ton. they should do the same...
IlliniProgrammer - value friking added or what? SB+
never settle...jump to a HF now or you will regret it on your deathbed.
IP any chance you could disclose your play for 5% dividends? Would it be worth it to start doing this while sitting on around 30k cash (2nd yr analyst)
Look at utes, MLPs, telecom, timber REITs, Europe.
Unfortunately, my corporate handbook has a rule that I can't recommend specific securities except as part of the ordinary course of business. (Your firm probably has that policy too).
BDCs are another asset class to consider.
^^^ After Einhorn's book, I like to either invest in companies directly where I know the owner, or buy stocks with simple business models:
** Take natural gas here and put it there. ** Make electricity to power peoples' homes. ** House people in apartments in big cities ** Pull liquid stuff out of the ground and turn it into gasoline ** Connect two people who want to speak on the phone ** Grow wood and sell it to people building houses.
A BDC is a great investment opportunity if you can understand it. I might be a quant, I might have an engineering degree from one of the country's tougher engineering programs; I can't understand these things. If you can understand them well enough to invest and know what you're buying, more power to you.
IP, have to disagree with you here. It sounds like you didn't really "get" the issue at hand in Fooling Some of the People All of the Time. Einhorn is pretty clear that the issue was Allied/the management team, NOT BDCs in general (doesn't he discuss his long position in Fifth Street's BDC in the book?)
I would also argue that saying the business model of a utility or energy company is as simple as "take natural gas here and put it there" or "make electricity" is drastically understating the issues involved in analyzing those companies. I may be taking an overly-conservative approach since I typically deal with companies with a high degree of financial leverage, but anyone who's investing in E&P, midstream energy cos, utilities, etc without at least a moderate understanding of refining mechanics, dispatch curves, derivatives and the related hedge accounting, etc is playing with fire.
BDCs have mark-to-market risk and credit risk, but generally far less financial leverage than the kinds of companies you mentioned, and I'll take that over crack/spark spread risk, hedge execution risk, etc.
They're really quite simple, at least on a relative basis. You've got hydrocrackers, reformers, and fractionating towers. And oilwells that come in all sorts of shapes and sizes as well as gas wells. Then there's the logistics of getting oil to market. And yes, you have different limitations on the refined products a given refinery can produce from different kinds of oil, although a lot of technology and infrastructure has gone into dealing with heavy oil over the past twenty years. They're not exactly easy to understand, but it's a heckuvalot easier to keep track of a company with 13 refineries that have 2.5 mmbpd of capacity and 2.2 mmbpd of oil production than it is tens of thousands of business loans and investments overlaid with SPEs, SIVs, and crazy loan terms in a company whose management you may or may not trust.
The geologists and engineers that run the oil companies and utilities tend to be pretty simple people who try to come up with the simplest system to deliver energy to an economy that consumes 18mmbpd of oil and about the same, energy equivalent, of electricity. Yes, it's complicated, but it's a heckuvalot easier than keeping track of tens of thousands of small business loans made to random mom-and-pop businesses.
Most of the oil majors have debt ratios of less than 30% (15% for US ones) and liability ratios of less than 50%. And most of the loans are either callable or fixed rate bonds of more than five years that trade with credit spreads of less than 200 basis points.
I guess energy is complicated. But it's simple enough for an engineer to understand. I just do not get BDCs and never will.
Really enjoying the dialogue.
Not sure what this means.So is it easy to understand, or does it take two college engineering courses? I'm not saying YOU don't understand it, just that it's not fundamentally easier (or fundamentally harder) than a BDC, and that for the majority of people on here it may actually be harder. I'm not saying that energy and utilities aren't a great income investment (I have some MLPs and midstream oil cos in my PA and cover HY E&P and utilities amongst other industries). I'm just saying that, especially for the majority of people who aren't engineers, a BDC's business model (loan money to mid-market companies) isn't any harder to understand than an MLP and that the challenge of understanding the fair value disclosures is no harder than figuring out the hedge position disclosures.
Have you looked at any BDCs besides Allied? The arguments you're making against BDCs are mostly just parts of the back story Einhorn gives in his book, and not even the ones that are the important part. The issue with Allied wasn't valuing the individual SBA/SBIC loans BLX was making (admittedly hard to do), the issue was with the way that Allied was valuing ALL of its investments, and in particular in BLX in the context of the losses BLX was taking on its portfolio. The issues of SBA fraud came into play later and were corroborating evidence, but not part of the initial thesis or something that's inherent to the BDC business model.
Not every BDC makes SBIC loans; many are basically just mid-market/mezzanine funds. I know of one BDC that has a significant percentage of its investments in syndicated term loans that have fairly accurate secondary market prices I can find in my email every business day and of several with ~50 total investments.
What was happening at Allied vis-a-vis their fair value accounting was, if not fraud, something very close to it (what was happening at BLX was definitely fraud and Allied management was probably complicit but it's a slightly different issue.) The nature of a BDC accounting makes this part of the risk you take, but disclosure/financial reporting risk exists at ANY company and the industries you favor deal with extremely complex GAAP rules which provide plenty of opportunity to manipulate earnings (which was essentially the initial accusation Greenlight made towards Allied). I also find your argument that management of utility companies or oil midstreams are inherently more trustworthy than BDC management confusing.
Fair enough, as I said my experience is in a high-yield context. If you've never looked at one outside of the context of Allied/Einhorn's book I encourage you to give it another crack. I think you might be surprised and at the dividend yield on some of the BDCs it's worth the effort.First world problems.
Oh of course. I would note, however, that the NYC suburbs are more expensive than many other suburbs.
A house in Highland Park, IL that costs $400K would probably cost $800K in Westchester County.
True. I was suburbs.
Hey guys,
Really appreciate your thoughts! I talked with my wife, and she said she would support me on any decisions. But you are right, I would need to take a lot of risk if I want to switch to HF, and my family would need to bear with me. Probably the best is to stay where I am now...
OP--> Interestingly enough, I feel very similar to the way you do about this. I also work in REPE and I do like it and the hours are manageable and the pay is good and could become extremely high, but I also often think I could be a great equities analyst and working at a L/S HF would be sick. I'm also early in my career (associate), and will likely get an MBA from MBA business schools">M7 next year, but I think I have decided to stick it out with REPE afterwords because I know I'm more likely to get a top job, the pay is good (and can easily become exceptional at higher levels), the job involves working with cool people, etc... and MOST IMPORTANTLY, I can still follow the markets and invest for my own account, which keeps getting larger and larger. I don't go short, but I invest in stocks, bonds, ETFs (including commodities, etc.), etc... it's more than enough excitement, so long as you have enough money to work with (which I'm sure you will have). Beating the market is extremely, extremely satisfying. And I typically have at least an 2 to 3 hours of down time per day when i can research markets and stocks, which is enough.
How does the work at a REPE differ from other private equity firms?
[quote=irresolutemonkey]Hi All, hoping to get some advice.
I've lived on a lot and I've lived on a little. But I always followed my heart. Follow your heart. Life is short.
Leave PE internship mid-summer for Hedge Fund with a healthy AUM (Originally Posted: 06/21/2017)
I have a buddy who started an internship at a PE search fund this summer. He got a late offer from a HF this week with a pretty reputable HF (L/S) in Texas with a solid AUM. Ethically speaking, its no question for him to stay at the PE internship. However, this new opportunity looks more decent on a resume. Should he leave a PE search fund (no committed capital) for a HF with a solid AUM?
also interested in the answer to this
Turnaround PE --> Distressed HF (Originally Posted: 10/04/2016)
I'm currently considering a role at a PE firm that specializes in complex transactions, incl. bankruptcies, turnarounds, complex divestitures, etc. It seems like the role would encompass both a set of financial analysis skills, industry analysis skills, and operational/management analysis skills.
I'm curious if this background might set me up well if I decided down the road that I wanted to go into distressed investing. If not, are there one or two things I could do outside the job to make this sort of transition more realistic?
Any thoughts here? Would love to understand how much option value this role has.
Yes, seen it happen before. Also from turnaround PE to growth equity, in case you change your mind.
Possible. I did distressed/turnaround PE then switched to event-driven (credit and equity). Now I am more focused on equity.
But the PE was heavily debt focus though.
MM PE to HF- When to start interviewing? (Originally Posted: 03/14/2014)
Hey guys, I've been reading WSO for years but don't post much. My story is I did two years at a BB and am now in my first year at a generalist MM PE firm in NYC. I work with a great team and like the job more than banking because I'm learning a lot more about investing.
I spend a lot of my free time researching stocks and am active with my PA. I'm interested in transitioning to a HF after doing two years at my current firm. I like that the universe of companies HFs can invest in is much larger than the comparable PE universe. In PE, I see a lot of really great companies sold in auctions which ultimately get sold for EBITDA multiples greater than 10x, which my firm will never bid. Only the winner in an auction gets to participate in the equity.
On the other hand, with stocks, anyone can invest and participate in a company's run. Some people prefer PE investing because they like the aspect of control investing (in particular being able to control the company in a downturn and mitigate losses). The flipside is it can be harder to exit private companies in a downturn relative to common stocks. In addition, I find it discouraging to do a ton of due diligence work on a company in an auction process and ultimately lose out to another sponsor who bids slightly higher and wins. Sure my diligence can be used for other deals in the space. That said, I would rather do a lot of work and get to invest in a public company (the caveat there is making sure not to invest at too high of a share price). Nothing I'm saying here is really that insightful, they are just things I have come to realize as I have started working in PE.
My questions are below. I searched the board for responses and didn't see many. Apologies if they have already been answered somewhere else.
1) I'm interested in working at a L/S generalist HF which makes investments with the plan of being in the stock for several years. From people I've talked to, it sounds like such places have a slightly more relaxed culture because they don't worry too much about slight quarterly losses (should they occur) as opposed to more short-term oriented funds. Does anyone have any ideas of funds like this? I've heard The Baupost Group takes a pretty long-term view towards its investments and Bloomberg terminals are not everywhere in their offices. This is the type of place I'm looking for, similar to a library where most people are buried in 10-Ks and other documents researching stocks as opposed to being glued to the Bloomberg monitor checking on the price of a holding.
2) I'd like to start at a HF in summer 2015. When should I start interviewing? If my start date is a few months earlier or later, that's fine too. I know a lot of the big HFs just finished recruiting along with the megafunds. Perhaps I should have been in those processes, but for some reason I felt it was just too early to be recruiting and those processes tended to target banking analysts. I'm not set on finishing my two years at my current firm, but would like to ideally. I know a lot of HFs recruit just when they need to fill a position, so timing can be uncertain. When should I express interest to headhunters? I was thinking of doing so pretty soon.
3) With my own investing I spend most of my time researching long ideas. I don't have a lot of interest in shorting companies and to date have never done so, although I have bought puts before. I feel like I would probably get more interested in learning how to find good shorts when I get to a HF, but I would still want to spend most of my time working with long ideas. Are there certain people at HFs who spend more of their time finding long ideas as opposed to short ideas? I wanted to make sure I wasn't a poor fit for a HF and that I might be better off at a long-only fund.
Thanks for any responses you guys can provide. To offer something back, I'm happy to talk about my experience in MM PE. I work from 9:30am-7pm pretty much every night and have a good work-life balance. I'm still making good comp, though definitely not as high as the megafunds. My current firm is pretty flat, so even though I just started last summer, I'm able to take on a decent level of responsbility and have started to develop my qualitative/soft skills more (leading calls, speaking up in meetings, etc) while still developing my quantitative skills.
hey man, have you read all of the interviews and AMAs we've had with Hedge fund professionals right here?
I'd start there. I am not too knowledgeable about HFs, but I will take a stab at your questions:
I think the more market neutral and short positions the fund has, the more likely they will be short term oriented and be watching their positions pretty carefully (especially in this market). For research into L/S hedge funds, you can use the WSO Company Database advanced company search by searching for keywords that would match your description. (you can filter by Industry, words in description,e tc).
Hedge fund recruiting is much more unstructured so you can start speaking with recruiters and other HF professionals up to a year before jumping all the way up to the month before. I'm not sure what the recruiting cycle is like for the larger guys and I don't think it's as crazy as PE recruiting which is well underway for Summer 2015, but it doesnt hurt to start reaching out early to some headhunters and express what you are looking for. Again, you can filter under industry by recruiter /headhunter (or you will be able to by this Monday - we lost that category by accident a few weeks ago but are putting it back).
I think if you're interviewing for L/S, you have to at least pretend like you are good at finding shorts and give them at least a few short ideas to show that you can do this work. It may be harder to justify, find a company with the right catalyst, but that can be what distinguishes the candidates that don't get a job and the ones that get snapped up.
Hope that helps.
Good luck! Patrick
Why did you join a PE firm to begin with?
Thanks, Patrick! That's really helpful. I had read a lot of the interviews but definitely missed some of them.
Near the end of my second year in banking is when I started to get really interested in stocks. I started reading investment books and blogs. I began to develop my own way of thinking about investing and based my purchases off of it (instead of just buying stocks recommended by research analysts like some of my peers). By the way, to date the best book I've read on investing is "Common Stocks and Uncommon Profits" by Phil Fisher.
Even though I began to get interested in public investing, I didn't feel ready to jump straight to a HF. I wanted more time to get exposed to investments and continue to develop my own framework for investing. PE has given me exposure to and made me think about investments on a daily basis. Because it's not as fast paced as HFs, PE has also given me time to research investment ideas on the side. In addition, I've learned a lot from hearing the partners at our firm debate investments at our weekly meetings. All in all, I feel like I've had more exposure now to investing and am ready to make the switch to a HF.
I also don't think I would have realized PE isn't right for me in the long term without having worked at a PE firm first. I probably could have gone to a HF directly after banking. However, I think I'll do better at a HF now that I've worked in PE for a year.
Hope that response is convincing.
IBD->PE->HF (Originally Posted: 08/06/2011)
How common is it to do 2 years in IBD, 2 years in PE, then move to a hedge fund and skip the MBA?
why would you do PE->HF? very different skill sets/mentality/knowledge base. not likely
basically false. depending on the PE firm and HF, the skillset / mentality could be extremely similar... the move happens regularly... of course, certain types of HF strategies wouldn't make much sense for a PE guy, but others definitely do... I'm not an expert on exactly which types of HFs look at PE people and why, but I can tell you that many do... I know someone who was at a big PE firm after is analyst stint in IB and now works at a fundamental value type HF and I also know another person who was in REPE after IBD and now works at fundamental value type HF (one of the best)
happens a ton. especially if there's a MBA stint in between.
Depends.... would make sense if the HF strategy was applicable....
As said over and over again, the more you stray from the norm, the harder it is to break into respective jobs (meaning you want a PE job, you do. IBD ---> PE OR related HF, or for HF you do IBD, ER---> HF, no PE in between...., you get the point. It is not usual for PE guys to jump to a HF without a very obvious reason)..
HF would be nice, but VC would be the best shit ever. Don't really see how it would get better than VC, you get to work with geniuses and their ideas....
Actually, he's right. PE->HF is a very doable path at value-oriented shops. I know several people who've made the transition to top-tier hedge funds both out of megafund pe and solid mm funds (new mountain, madison dearborn, midocean, etc)
having a star doesn't mean you're qualified to talk about hf recruiting, especially if you are, as your profile states, in venture capital
actually, prior to VC I worked for one of the top mega HFs, so I do in fact know what I am talking about. I didn't say it was impossible, I said it becomes more difficult to land positions as you stray from the norm (meaning IBD, PE, MBA, PE for career).
Again, I will reiterate - never said it is impossible. I am now at a top VC, and do not have a traditional background in the sense.
Carry on
This is actually a common move, especially going into funds that are value oriented, activist, or distressed debt. I know for a fact that pershing square and baupost have recruited people from the megafund PE firms.
3rd Point and Owl Creek have at least a handful of ex-PE analysts as well.
Curious about this as well. If not ex-PE guys, who else would value or distressed HF's recruit? Equity research guys, really?
ER and other sell-siders-restructuring bankers in particular for distressed. Sometimes from asset-management groups as well.
Is PE to HF as common in Europe as in the US? (Originally Posted: 01/10/2016)
Dear Monkeys,
Reading the forum, I've understood that in the States its quite common to go from IBD to PE and then to HF. Some posts have even mentioned that its relatively easier to transfer after the PE stint compared to just 2 years of banking. Was wondering if guys who have more experience with European recruiting could tell if this is the same in Europe? My gut feeling says that not so much, as normally (except for some US PE firms), both the IBD and PE are open-ended contracts in Europe, not "2 years and out" ones like in the States. Also, as the common exit time to PE in Europe is rather 3-4 years, it would mean that one would only go to HF after significantly more experience (for example 4 y in IBD and 2 y in PE), which probably will make it less likely (as people get too expensive by that time). Let me know your views!
Thanks,
bump
I'll try one more bump
Why PE expereince in valued at a HF, especially L/S equity funds (Originally Posted: 06/13/2015)
When hedge funds are doing recruiting, some of them, espeically the traditional L/S equity funds are specifically looking for candidates with prior PE experience.
Other than the technical and modeling skill in PE that is mostly transferrable, what other aspect of the PE experience does L/S HF value? It can't be technical/modeling skill only as many banking analysts are pretty good at modeling too.
Any thoughts on this?
fix spelling errors in your title, it's like sending a pitch book to a client with the wrong company name on it
PE teaches you to do due dilligence on a deeper level than banking which is valued at fundamental funds
Because some HFs can't be bothered to teach banking analysts how to unlearn all the bad habits they pick up in banking. There's also the idea that PE supposedly trains analysts to get into an investor mindset (although I'm not sure if I fully agree with that).
What are some of the "bad habits" analysts usually learn in banking?
It is another form of filtering/signal value.
PE/HF switch (Originally Posted: 05/25/2010)
Couldn't find much by searching
I am curious if many people switch from PE to HFs or vice versa. I have read some of "TechBuyout"'s posts, where he describes switching from a PE fund to a HF.
I was looking at a lot of megafund sites and included in their relative work exp requirement is "investment management", do you think an analyst program at one of the top HF's would count? (i assume that HHs wouldn't be jumping on you, but if you made an effort is this feasible?)
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Ut vel rerum unde quam ipsum aut aut. Est adipisci molestiae sed perspiciatis quo. Consequatur corporis et doloribus accusamus inventore voluptates voluptatem.
Molestiae iusto fugit quam dolore accusamus consequuntur. Porro nihil deserunt velit magnam sunt. Id aut blanditiis soluta quos. Ullam maiores reprehenderit quidem est. Sunt temporibus iusto unde rerum rem.
Tempore aut repellendus perferendis quia ipsum ea ratione. Minus labore nisi dicta eius excepturi officia. Inventore tempore saepe rem quia voluptas. Recusandae autem repudiandae et corporis itaque.
Asperiores quia voluptatem consequatur ut sunt hic dolores eligendi. Ut dolor ipsum illum et voluptatem qui dolore dolores.