Monkeys -
Fortunate enough to have landed a PM role. I'm excited about the opportunity - but also have a bit of jitter.
Any current PMs have advice to give? Things you wish you had known starting out, any tips for getting started, etc.?
Thanks in advance and look forward to hearing your thoughts.
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Yeah. Being a PM and analyst are two different skill sets. It's easy to fall back on what got you here, which is being a good analyst. It's a bit of a crutch. Even now, I oftentimes find myself focused on analysis because it is easier to think about some bullshit analysis than it is to make portfolio decisions.
You have to trust your analysts. It's a strange transition because up to this point, you have been responsible for your own work. But you just have to trust that your analysts are smart and capable and do good work. If you can't let go, it is really hard to be both a PM and an analyst. You will not be set up for success.
Something that I did not actively think about after becoming a PM was how much to shield the analysts from what is going on in the portfolio. My friend runs a fund and doesn't provide his analysts with much visibility into the portfolio. He says he does this so they are less distracted and can just focus on their own names and what is in front of them. So in a way, he shields them from the daily stress of the portfolio. I grew up in a fund that was just the opposite. It was an open book. But if my boss (fund's founder) was not having a good day, he made damned sure nobody else had a good day. I didn't realize it but giving your team full transparency is incredibly stressful and distracting for them. It's almost like passing along part of the burden of your own job onto them when they have other things to worry about. Just something to consider.
Feel free to PM. I'm not sure why these are the three things that immediately came to top of mind for me.
I wonder how many years it would take for a PM to realize they have absolutely zero expertise in generating superior returns and that their investing decisions are nothing more than pure chance.
Nice try, Eugene Fama...