Big career move: Daily Stat Arb or Factor Based Monthly Quant?
(This has also been published in the HF forum.)
Fact:
Current:
1. Managing a new mutual fund for a small money manager (head count 20) with 17m for 5 qtrs. Performance is M* top 3%.
2. Managing a similar institutional account with 73m for 3 yrs. Beat benchmark by 1.6%/yr on average.
3. 3-4% shareholder of the company.
4. Fixed compensation 178k/yr with 122k/yr bonus/profit share.
Offer:
1. A small stat arb shop with 6 guys/gals trading in JP, Australia and China.
2. The fund has half year record and 70m. So far SR is 1.7.
3. My role is quant PM for the new China fund.
4. Fixed compensation 130k/yr, bonus not clear. No equity compensation.
Help needed:
1. Would you accept the offer if you were in my shoes?
2. I like the stat arb experience and growth potential, but I realize that this offer is probably not acceptable as is. So any suggestions on how to negotiate is very helpful. In particular, I do not know whether it makes sense to ask for an equity stake. Is it common for HF to pay equity and typically in what percentage?
3. Other important consideration? I did my due diligence and their live performance is worse but consistent with their backtest results.
4. The owner was from PDT and SAC. So it surprises me that he can only raise 70m after two years. Has stat arb become a sunset trade?
Any comments are very welcome.
Explicabo sit vel amet deserunt iste. Veniam tempora magni impedit excepturi voluptatem asperiores.
Est autem dolorum nam neque esse. Reiciendis aut enim dolores dolorem nostrum. Consectetur praesentium facilis et esse qui impedit. Ea voluptates porro autem iste.
Qui voluptatum dicta repellendus et aperiam aut. Quaerat magni dolor praesentium. Voluptatem aut ut praesentium ipsam deserunt sint sunt praesentium.
Non et minima assumenda ut voluptas qui. Non illo et tempore expedita et. Praesentium voluptate aut eum autem architecto at. Aut qui sed dicta. Minima ut qui magnam ut et et et. Quam corporis sed perspiciatis architecto quae. At saepe animi sequi ab officia maxime.
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...