Scaling from $100mm to $1B

I run a long-only equity strategy that’s around $100M today. Performance has been strong and meaningfully ahead of the benchmark (S&P500)  since inception (2-3 years; annualizing 600bps ahead with an Information Ratio of ~0.8, vs Large Cap Core peers performance is in the top 1%).  

Good to know data since inception -- 

  • IR 0.82
  • Tracking error ~7.3%
  • Sharpe 1.32, Sortino 1.61
  • Alpha 2.1% annualized, Beta 1.19
  • Up capture 153%, Down capture 106%
     

    Capacity is $2.5B based on the liquidity parameters -- obviously right now there is no issue there. Top of mind for me is setting the strategy up as best I can for scaling up the capital behind it. 

    Performance is important of course, but distribution/marketing is another leg of the AM stool. Firm is a private MFO and we don't have a sales and marketing department therefore any potential distribution/promotion of the strategy is generally is done internally.

    Curious for others thoughts and experience as it relates to this as to how you'd think about growing the AUM base. (I.e. reaching out to other FOs, foundations, leveraging existing network). 

    3 years in my mind is the bare minimum of a track record, and 5 years would feel a lot better in terms of demonstrating skill, so this is largely about making sure everything is dialed in by then (which means preparing now).

    Thanks for your input!

1 Comments
 

Impedit voluptatem in eveniet sequi. Modi perferendis magni nobis nostrum architecto eligendi sapiente voluptatem. Quia quia eaque tempore ut asperiores molestiae reprehenderit voluptates. Consectetur placeat tempora culpa consectetur. Rerum vel possimus repudiandae autem voluptas dolorem. Id ad aperiam consequatur repellat. Labore omnis vel atque aut tenetur nemo magni.

Est aut et nostrum rem. Magni et molestiae omnis consectetur id voluptatibus.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

August 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.4%
  • Morgan Stanley 08 97.8%
  • Goldman Sachs 02 97.3%

Overall Employee Satisfaction

August 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Evercore No 98.9%
  • Morgan Stanley 01 98.4%
  • Banco Santander 02 97.8%
  • BMO Capital Markets 12 97.3%

Professional Growth Opportunities

August 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.4%
  • Goldman Sachs 01 97.8%
  • JPMorgan 01 97.3%

Total Avg Compensation

August 2026 Investment Banking

  • Vice President (16) $429
  • Associates (48) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (25) $178
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (83) $151
  • Intern/Summer Analyst (75) $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
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
DrApeman's picture
DrApeman
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
Mimbs's picture
Mimbs
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...”