$1B hedge fund with <5 employees
I have a summer analyst offer at a hedge fund that manages $1B+ and has 5 people on the investment team (10 if you count back office). This seems like quite high employees/AUM and I'm wondering how comparable to other firms this. Is this a positive fact or for this early in your career is it better to start at a firm with more people and a bigger name? Also, if I were to receive a return offer does it seem likely that analyst compensation would reflect this capital concentration?
Pretty sure AUM/employees is high, not the inverse. Surprised you got the offer.
Every time I get a recruiting email for a HF role, the recruiter will highlight if the firm has a high AUM / head. It generally lends itself to more time with the PM / senior analysts, more responsibility, greater ability to get ideas into the book, and maybe even more flexibility in terms of mandate / investable universe. ~$200mm / head is not crazy high, regardless
I would also note that a HF is likely a viable, going concern at $1bn+ AUM (as a rule of thumb). Or at the very least, I wouldn't think you are taking a lot of career risk in joining such an organization.
The flip side is, while people in the fund's space might be familiar with them (particularly if their track record is good), they may not have the visibility of a larger fund, which may be important to you if you are considering joining them right out of school.
Sounds like a great opportunity - I would jump on it (without knowing your other opportunities)