Can you move from Pods to SM's?

Hi,

Will SM's or activist funds look at analysts working in pod shops?


I'm in PE, previously was in IB, and would like to work at an activist or single manager. I haven't found many of those funds recruiting, while pod shops reach out constantly. My thinking was that getting into public markets at all is smart and then later transition. Some colleagues / mentors have suggested the work is so different that the places I would like to work wouldn't consider analysts from pod shops. 

Is that hyperbole or is that accurate? The line of reasoning was that taking a view on earnings versus consensus every quarter is fundamentally different to picking stocks that are under or overvalued


Curious on perspectives here. My current view is that I'd learn a lot at a pod shop but I don't think it's what I want to do long-term so if it's not something that could lead to areas I'm interested in then I don't think it's worth going through interviews.

 

You need to do more research.

Do not make a move into activist/net long single managers if you are unsure if pod workflow is materially different; you do not know enough about either career to make a move from PE yet. 

I would also look into LOs.

 

For the avoidance of doubt I am aware of the differences, hence having a preference.

The majority of HF analysts have come from IB and then PE, knowing they want to do neither long-term, so generic advice about "don't do something you're not committed to" isn't particularly helpful.

There are far more Pod openings than LO / SM / Activist so my question is: would getting into publics sooner be better, even if in a pod, or is it better to stay in PE or IB longer and wait for an opening.

 

This is a pretty draconian view and definitely not the case today. Have seen the good pod analysts go from pod —> big tiger cub and back to pod after realizing pods are better lol.

I promise you if you’re talented no one will ever hold your background against you. If they do, ask yourself if you want to work for them. In fact, I have tiger cub friends who actually prefer to hire pod analysts over PE or IB people…there’s your data point.

 

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