After how long to give up on your PM?

For those in L/S, after how many years of underperformance do you give up/accept that you failed to do your diligence and your PM is a road to nowhere?

Impression of work style also obviously contributes to the decision (does it seem like he has a repeatable way of finding alpha, etc.).

Curious what others thoughts are around sticking it out and hoping things turn around vs. taking the initiative to look elsewhere.

Comments (6)

  • Associate 2 in S&T - Other

I'm in a totally different asset class, but I've been in your situation 

My team lost faith and respect in the PM after 1 year; the guy's attitude didn't help either as he became more hostile as his failures mounted. (unfortunately, this guy has close links to management and probably will never get fired). By 18 - 24 months with the same trajectory, people left. 

Can you elaborate how you performed due diligence on your PM? My former firm promoted the PM I interviewed to a role on another continent; they then brought this outside guy 2 weeks after we started and signed our non-compete, so I never had the chance to do due diligence. 

  • Prospect in AM - Equities

Surely if he is underperforming and hasn't been kicked out, the fund still believes in him?

  • Works at Point72

there's a difference between blowing up and oscillating around zero. You can do the latter and survive at a platform for years. Yes eventually you will be culled but it's not as binary as it might seem as long as you are not overtly losing money. Also ties to mgmt, etc

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