About to join top global fund, feeling like a massive imposter
Basically summed up by the title.
I'm moving into a distressed credit role at a top global hedge fund. Technically I have 5 years experience: 2 at a regional LO, 3 at a ratings agency, however of that I've only started properly focusing on distressed names in the last year. Even then, I'm almost entirely self taught as the PMs at my current shop have no real distressed expertise: they basically let me focus on it because it was something I was really interested in and they wanted to participate more in restructurings etc.
Anyway, I landed an interview at this fund and the PM and I got on really well (ended up talking for like 2 hours). He really liked my views on all the credits he was interested in, even though we only really talked about them at a surface level. I had follow up interviews with colleagues that were more technical and I think they could tell I was junior, but they still gave me the green light.
This is a dream role for me, and I'm extremely passionate about this asset class (I can't imagine covering anything else). I'm confident that with time, I could be a really good analyst, and I'm willing to put in the hard yards to get there. But I'm feeling intimidated by the brand name (every time I mention it to someone, they make a big deal out of it) and that I'm suddenly making all this money. I just worry that I'm going to show up on day one and everyone's going to see through me. It's like I know so many other people in LOs who know more than I do, I wonder how I managed to land this dream gig.
Congrats! Trust that those making the decision to hire you know more about your skills and potential than you do. Go make some money!
Thank you - will definitely give it my all.
Perfectly normal.
Focus on what you can do. Set a routine. Treat each day as it comes. Create own impeccable set of values and behaviours.
Lookup the "first 90 days" (by Watkins) and create a simple plan: work out who the influencers are for your desk/area.
Get in every day at an early same time. Lean in. Go to sleep early at home to rest yourself well.
After 90 days you'll be well under way with your own rhythm of what works.
And save some money; things happen in this industry beyond your control and you want to build some of your own security.
Appreciate these words, they help.
New years resolution has been to get into a better sleep routine and so far so good: I'm waking up at 5am most weekdays, getting to the gym before work and clearing my inbox in between sets, and then going to bed at like 10pm. Instantly felt the impact on my productivity and overall mood, vs the past when I was in the habit of staying up late to squeeze in another episode of something pointless and then felt like shit for the rest of the week.
Looking up Watkins now.
“If somebody offers you an amazing opportunity but you are not sure you can do it, say yes – then learn how to do it later!”
― Richard Branson
Congratulations man. You deserve it and you worked your ass off. Make some friends at the junior level in similar roles, catch up with them often, sit down together and ask them as many questions / do modelling walkthroughs together - remember there's a lot you can offer as well. The industry is very small, so this will not only help you get better technically, but also build a few solid connections. I honestly wish more people did this.
Thank you - and yes I'm lucky in that the industry is small and I've already built a small but growing network of people who I'm regularly in contact with to bounce ideas off. Re the modelling, I'm also pretty good at making the sell-siders work for their money.
Congrats! Out of curiousity can you share how you landed the opportunity? Did you use a head hunter or through your network or cold application?
A bit of networking, use of headhunters, and massive amounts of luck.
When I was first starting out on the buy side I met a guy who was at one of these top funds. In retrospect I think I said a lot of dumb stuff in front of him but I probably at least conveyed that I was passionate about the asset class. About a year later I reached out to him about moving over to a HF, he put me in contact with a recruiter and apparently talked me up. Said recruiter was a bit skeptical about me at first but put me in front of a few people; the feedback was consistently "we like his enthusiasm but want someone more experienced". Eventually I met my soon-to-be PM and ended up with an offer.
That's helpful, would you be able to pm me on the hh you worked with?
The sooner you stop idolizing the people/firm you are going to be working for and sooner you realize that majority of people in the HF space are glorified marketers and storytellers the sooner you will become successful in this industry. Even at the top funds <10% of the risk takers are true super stars driving the PnL - so odds are you probably aren't going to be working for one of those guys. Maybe you are and then you are in a very fortuitous position to start your buy-side career.
You obviously are smart and hardworking enough to be in the seat you are in otherwise you wouldn't be in it. Change your mindset, believe in yourself and your potential and do the work to build your own unique investing framework and you'll have a long career on the buy-side.
^ Absolutely this.
Former PM and current allocator here. SB’ed this comment and quoting it because I can’t stress enough how accurate it is.
OP - congrats!
Get working and don’t worry about others. These people are not geniuses and it’s not anything you can’t do. Once you see and understand everything (within 6-12 months) you’ll realize this. Keep your boss happy. Work hard. Get better. Try not to piss off people and learn the culture of the place and act within that (I can’t stress enough how important this is to survival).
As an allocator I can tell you I see everyone’s returns and stats. Over 80 percent of products should not be around and serve no one but managers themselves who get really rich for… not performing? It’s all marketing. But I guess it’s what keeps me in a cushy job so I should shut up.
good luck
I was thinking about this just a few years ago and you've put it so eloquently in words. I'll add on though, with 1 debatable comment: the other 90% of PMs are the ones jumping from pod to pod.
Cool path. Mind pming me?
Congrats! Sounds like you’ve put the work in and it paid off, not many better feelings than that!
Feels amazing, it's the opportunity of a lifetime. Now it's time to prove that I deserve to be there I guess.
congrats - I’m actually in a very similar position (credit HF focusing on distressed, self taught.) four years experience, have stumbled into 8 points at a relatively large fund so I’m absurdly overpaid - I felt the same exact thing starting out as you but figured out my niche relatively quickly (and realised most people are kinda dumb)
would be open to PM
Sorry for the naivete - what does eight points mean?
8% of the bonus pool
e.g. on a 2&20 $1bn fund, 8% share payout at 10% gross return with $5mm of expenses where 75% of net fees go to bonus pool would be roughly
~$1.9mn=(1e9*((10%-2%)*20%+2%*1.10^0.5)-5e6)*75%*8%
For every newbie that comes into these seats at “big name” shops, there is an older disillusioned hand walking out the door. Because the PM is actually an idiot that somehow made a name for himself, because the comp plan is unfair, because the returns are dwindling under the surface after riding on glory days backward looking track record, etc.
No workplace is perfect and they don’t deserve perfect employees either. We are all faking it until we make it. Just remember to enjoy the ride as you conquer another learning curve, build relationships, and put yourself on a higher earnings trajectory. Folks like yourself who are always hungry and hustling, will always want more - eventually to get more carry, to run your own shop, to expand in other asset classes. Looking back, some of my happiest days professionally were the very early ones where I felt everyday that there was so much to prove and couldn’t believe I tricked everyone into allowing me into the club. You will evolve out of this feeling eventually as you become a grizzled vet, but channel that insecurity into a drive for purpose, hunger, and learning. Congrats!
Honestly made me feel a lot better man - thanks!
Just wing it.
pod shop?
Yes
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