Do PMs take their teams with them?
Right, I've been discussing this with a friend and we've had opposing views. However, without much experience on the table I can't say it's one way or the other empirically. Therefore, I thought it's best to ask for more experienced people's opinions.
When PMs move from one fund to another, is it common for them to take their teams with them, or recruit anew? Do they have that kind of freedom or are they bound by what their new fund dictates in terms of recruitment etc. Also, how does their 'budget' work? Is it a fixed amount that they can use to recruit people or will the recruitment costs come out of their pnl?
Obviously the assumption is that they are ok with the existing team to begin with.
I'm curious on people's opinions or experience, I think that this is more of a hit and miss rather than a standard behaviour (whichever way it works).
Sometimes PMs have teams with them and sometimes they are stand-alone...there is no rule on this one. In terms of hiring, at large multi-manager funds there is generally some research and staff that are paid for by the firm but if you want to hire someone just for you or your group you need to pay him just like any other expense you incur.
Thanks for the response.
It depends on the type of firm. Places that have tons of managers have a system where they recruit a PM, the PM gets a contract for x % of his PnL, and then pays his 2-3 analysts he brings over out of it.
Know of one fund in London where the PM left to start his own fund and took an analyst with him. Probably differs case by case.
It definitely happens but depends on the strategy, team, circumstances, etc. Plus if you're a more senior analyst the math may get tricky-stay on and get your boss's old job or leave with them to a new shop where you may get equity etc.
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