Do PMs put their track record on their LinkedIn
Hello WSO,
I know this might rub people the wrong way. But hey, I'm in the mood of starting this Fri with a bang.
I've browsed through thousands of LinkedIns of PMs and so far, I've encountered only three that explicitly stated their Sharpe ratio, AUM and trading period.
My question is why is it hard to find a PM's LinkedIn that boast his lofty Sharpe of 2 but it's easy to find ones that say something like "... oversee trading of a US$10b fund" and "Deep expertise in StatArb trading"?
My take:
a) Those with a Sharpe of 2 form 1% of PMs b) Publication bias; PM's are probably losing money but won't show it
What do you think?
Cheers, Nijikon
Those who do don't really need to advertise on Linkedin.
But those who advertise on LinkedIn aren't necessarily those who don't need to show their track record, hence their track record isn't exactly good.
Conclusion: there are very very few good PMs?
There are very few good PMs, yes. That much is relatively obvious.
Why anyone would want to put information related to their track record on LinkedIn is beyond me.
You're a PM in a small shop looking to make a move large fund to double your AUM, why not?
IF it is verifiable, I don't see any harm putting your track record to achieve said goal. Surely, netizens can't backward engineer your strategy from the phrase "Sharpe is 2.0, max DD: 50bps over 3 years"
If someone wants to do such a thing, why not indeed... I certainly can't imagine why I'd ever want to.
I'd be very careful doing this. Unless you've specifically agreed in your agreement with your employer that the track record is yours, posting it would likely violate the confidentiality clauses (the track record is owned by them, not you) in your agreement and could land you in hot water
I was just getting ready to post about the same thing. Firms (compliance/risk) are anal about this kind of stuff being posted on social media. At my firm, Twitter, FB business, Linked In, etc., content needs to be approved by the firm before being posted or you're on the shit list.
People who are great/good at something don't have to tell everyone, people know. Michael Jordan isn't walking around and telling people he's the greatest, Swaggy Pete from LA would however.
I understand what you're saying but I wouldn't be quick to say the analogy is spot on. Players in the NBA are already in the top 1.2% of basketball NCAA players (quora) and at any given era, there are about 20 players whom everyone knows is at the top.
With the multitude of HFs and managers, things are opaque. If you're a driven employee seeking to advance your career, it's simply more economical to just state what you're worth. If you got a Sharpe of 2, stating it is factual, objective and efficient in telling others what you can do.
Furthermore, you can call up ESPN to get the stats of ANYONE in the NBA.
I find it hard to believe that almost all PMs who don't write their track record are good / great. I bet my money they have a different story to tell come interview time, unless they come from the DE Shaws, Renaissances whom we all know are the 1% of PMs that are great.
Oh yeah, and Swaggy P just went to Golden State. He might just get to be something great.
The first issue is compliance. I have a track record because I manage a sleeve. However, my personal track record is different from my firm's. Firms are very specific about what performance figures get disclosed to LPs. So it would be a real issue if someone is publicly disclosing "rogue" performance figures on Linkedin. The second issue has to do with having absolutely no benefit to doing it. Nobody serious is going to find a job on Linkedin. At this point in my career, I will get my next job through headhunters who have known me for my entire career and through my contacts who know what kind of investor I am. I get asked what my track record is, and I will furnish it upon request in private during the interview process. The third issue is that nobody likes to put out details unnecessarily, notwithstanding all of the issues above. If I did well, it puts a target on my back for people to root for me to fail. If did poorly, it makes me look bad. The fourth issue is that people in the industry just tend to be very private. I think it's just the culture. People are averse to talking their book with strangers, let alone their performance figures.
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