Are small cap hedge funds worth it?
I'm one year in an IB stint at one of the big Canadian banks, and I have an offer from a small hedge fund. When I say small, I mean $100 mm AUM, it's basically two portfolio managers and I would be the only analyst. They have a good strategy but they buy extremely volatile microcap companies; when returns are good, all-in will be easily six figures, and if bad, well base is $60k so you can get by but you won't exactly be living it up. The fund has historically done well, with returns averaging about 30%. Hours are good too; maybe 45-50 hours a week.
Perhaps more important than the money is the future career trajectory. Where do I go from analyst if the fund only has a couple people? Associate PM? Do I hop to another hedge fund? Yet I am miserable in my current spot and there just aren't many hedge funds in Canada, and I'd ultimately want to work in a hedge fund one day. Do I take the offer? I know this is a personal decision but would love to hear if anybody else has any relevant experiences / recommendations.