Fired from PM job - what now ?
Hi,
After having been a sub PM for about 4 years, last year I finally got a full PM position at one of the mid tier MMs. Unfortunately things did not go well for me. My portfolio was not positioned very well for some of the sharp market moves we saw and I quickly got close to my drawdown limit and got fired. I did learn a lot from this experience as these markets uncovered some gaps in my framework and my risk management, so I am confident I can run my strategy much better in the future. The question is if I can get a chance for this. Do you guys think there is any chance for me to get a new PM position? Otherwise i guess I could try for sub PM again. Would appreciate if anyone could share if they had similar experiences in their own careers, or maybe someone they know
Yea but you might have to take a step back at a lower tier shop with a shittier infrastructure and tech.
I think you need to focus on the long haul. Yes you can get another PM role but will you be as successful in 5 years going down that route or will you be better off getting into a better shop as a sub-PM and then work your way back up to PM.
You also have to think about what happens if you go to a new shop and fail due to other gaps in your knowledge. Will that be the kiss of death for you career wise?
So, you have a track record of roughly 4.75 years: 4 years as sub-PM and 0.75 years as PM? And this is the first time you've hit a drawdown and been fired? What's your cumulative life-to-date PnL?
If your LTD PnL is still meaningfully positive (e.g., ~$50mm), you have 4 profitable years in ~5 years of risk taking, and this is the first time you've been fired, I think you'll be fine. I know people who have said they almost prefer hiring traders who have blown up once before as long as they've shown that they learned from it.
Approximately how much did you lose in absolute terms and vs drawdown limit? Everyone knows which of the platforms are the most aggressive when stopping out PMs (stops are fake, etc.), so if you got fired from an Eisler, Bluecrest, or MLP you'll probably get more understanding.
I would take some time off if you haven't already to clear your head. The hiring market is a bit slower this year than it has been any time since 2020, so hopefully you can afford to sit out for 6-12 months and you don't have to rush to get a position at a third-rate firm just to pay the bills. Get some sleep and exercise, spend time with family, and take a vacation if you can afford to. I'd start speaking with recruiters or biz dev after you've cleared your head.
Thanks.
Well LTD PnL is more around 30m as initially my capital allocation was a bit lower while I was still working on other things in parallel. But in the role I before that worked in a team that made about 10-20m per year for three years with a very similar strategy, but I was a senior quant in charge of the strategy, not PM or sub PM.
I hit about 75 percent of the stop loss limit.
I do have a fairly long notice period where I still get paid, so financially there are no issues but I would really like to find something before the start of next year
The market is full of PMs who have blown up and have moved to other MMs (just look it up on Linkedin). Chin up, it happens to most people. If they can make the move, so can you.
Good Luck
Thanks. I guess the main problem is that this is my first full PM position and I got stopped out quite quickly. I suppose it is a different story if you made money for a few years and then hit the stop
How long was it exactly until you got stopped out?
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