Graham Capital setup
Anyone have a sense for how PMs, analysts, and stops work? Is it any better to be in Connecticut instead of London?
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Based on the most helpful WSO content, here are some insights related to PMs and analysts, though not specifically about Graham Capital:
PM and Analyst Dynamics:
PM Feedback and Analyst Input:
Location Considerations:
Career Progression:
For more specific details about Graham Capital's setup, it might be helpful to look for threads or discussions directly related to that firm on WSO.
Sources: Finishing 1st Year as HF Analyst - Ask Anything, Performance of the best PM’s at MM’s?, Hedge Fund Guru Answering Inbox Questions Here. Thanks Mr. Pink Money, First time PM - Now What?, What is your relationship like with your PM?
Stops are wider than the MMs.
CT office is surreal. Literally a mansion. London office has better food selection nearby.
Thanks a lot. Is Graham not a MM then? How do they hedge and formulate payouts?
They're a macro multi-manager. Different from multi-managers that take the market neutral equity model. And when the MMs have macro teams, it is heavily skewed towards rates and vol rv. Macro multi-managers have a few risk takers, take directional risk across asset classes, and give each of those few risk takers wider stops/ vol targets.
Sounds like an Associate role have a lot more longevity than a MM? Would it also have lower comp if they are running directional without MM leverage, the fund economics would be lower than a MM and closer to a typical HF? Thanks a lot
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They don't have a pass-through structure, so yes, payouts are way inferior.
Now, for certain investment styles such as theirs, you might be better off earning lower economics for 5 years straight than at a MM having a great payout on year 1 and then getting fired because of the tighter stops. Important to know how you make money and how volatile your style is.
To be honest Citadel or MLP are unlikely to ever let you swing the way Graham does.
They don't have a pass-through struct. But they have some well-known, large risk takers (people in the space know who they are), managing several yards of medium and longer-term directional risk with wide stops... selection bias, but getting a seat in one of those teams is a lot more favorable than pods with a tight noose. But it depends on style. If you're short term and rv, makes more sense to head to Millennium, Baly or Citadel. If you're not, P72 or the macro muli-mgrs might be your main choice.
Do you know if P72 has much involvement in directional macro strategies?
Also, do these macro multi-managers in directional macro take on junior recruits with some background and results in the space?
yes, but requires a combination of quant chops to develop systematic trading strats, good deriv knowledge, a passion for markets, and ability to show promise through trade ideas, independent research etc. From then its a matter of getting in front of the right people.
Feel like the chances you get on a team with those guys is pretty slim - although the big guys I knew have left it seems over the last few years (Jepsen in particular)
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