Exit Opps after $2-5 Bn Hedge Fund
Hi all, I just started my second year in banking and got reached out to by a recruiter for an post-banking opportunity at a long hedge fund for an immediate start. I’ve never heard of the fund and they have a minimal website. However, they manage $2 to $5 Bn out of an investment team of ~5 people (this includes the cofounders). Team # seems small but they manage a lot of money… Is this typical? They’ve been around for decades too. Tempted to take the opportunity as I feel I’d learn more than I’ve learned in banking (especially working so closely with founders) but am worried about limited future opps in case HFs aren’t for me.
Any thoughts on how to evaluate this? Do you know anyone who went to an under the radar HF, and did they like it? Would this be limiting early in one’s career or a great learning experience?
$2-5bn single manager is not under the radar. I would go for it.
take a look at holdings filings to see position count and size. Low number of positions + high due diligence threshold would make sense for that number of IC
$2-5bn with ~5 people is some pretty damn good fund economics. Go for it.
I might!
Retire?
Yeah this IS the exit opp. should definitely do it
What is a "long hedge fund"? .
a typo
You can always go to bschool to reset. That is what many of my former classmates did. If not, I don't think that the fact that this HF is under the radar will limit you anymore than any other HF. In the end, I'd say that PE will be closed off but everything else is still fair game.
What coverage group are you in? Are you in NY? Congrats on the opp!
Not going to disclose but definitely not a top group at all. One thing I’ve done really well though is know how to tell my story in a way that makes sense and shows I’m creative, and I have a pretty unique background. That is super important to standing out! Being curious and creative is probably more important on a small team where you have more say so bet that helped.
Exit opp: you're already there
Hey congrats on where you are at and the option ahead of you potentially. Sounds like a solid opp from the little you shared. I do know / have some experience with funds in that size / style it seems and generally have thought career prospects are good. Granted the people who I know went to those were a little more exceptional and/or different/more independent / entrepreneurial maybe than the standard high-prestige, high-achieving hot shot kids from top schools/banks. I have seen some just stay in the HF industry whether it be at their first fund or more common hop around to other funds and/or eventually join a mega platform MM or the like. I do believe I know some guys who went into tech afterwards either to found a VC backed company, run a tech company or have some high exec / finance position or the like. I believe I have also seen people go into PE / private markets or other stuff like that eventually in their career afterwards. I even know someone who went back to banking at like a mega bank afterwards to be a coverage banker. So def a variety of options. Hard to tell what is more applicable to you / your situation but I hope this info may be at least somewhat helpful. Either way, best wishes and good luck :)
This is very helpful, thank you! HF skills are definitely “specialized” but it seems like there is still lot to learn and a lot of ways to grow your career depending on what skills you gain and how you leverage them later
You are welcome. Yes I hear you on that. It might be a little more flexible and/or self-directed when it comes to learning new skills/exiting to different jobs as compared to IB/PE
Tempora eum sint iste aut fugiat. Ullam harum ducimus aut aut est in.
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