Have lost trust of PMs

Hey all -

Senior analyst here at a large lean SM. For a variety of reasons (I don't need to litigate here what's fair or not, but can expand as needed), I am of the view that I have lost the trust of my PMs. (I say plural because there are two people who kind of run the firm, though one of them is "the" SM.)

This is meant both in terms of getting risk on (which is where it started) even when that risk consistently has outperformed, and now, more recently, in terms of pointed and specific negative feedback over real or perceived errors in my coverage (ranging from disputes over what I did or did not include in a model to risks that I was not aware of or rumors that I had not heard on names we own). I admit that some of these were indeed my fault, and there were things I could and should have improved.

But it feels to me that I've lost their trust and there's really no apparent road back from here. I'm not quite sure what the next steps are.

For any of you who have been here, what do you recommend? What are my options?

Comments (12)

  • Associate 2 in PE - LBOs
Aug 10, 2022 - 8:33pm

Sit down with them and talk it out. Grab a coffee and level set with them the issues and how you intend to fix them - make it a proactive reach out. Best case they appreciate worst case you're where you started 

when you say sr analyst are you the most senior layer other than founders? On are there partner analysts you can talk to to see how you can bridge the gaps/issue, real or perceived?

Aug 10, 2022 - 8:50pm
marketimer, what's your opinion? Comment below:

I'm in a similar type of fund. You're expected to make mistakes. Most of the people in SMs won't be the stellar career guy that outperforms massively in the first 3-5 years and make it into a partner. It will just take some time for you to show with your trades that you are not committing the same errors. Glad you aren't in a MM - that would be more difficult to overcome. 

Aug 10, 2022 - 8:52pm
marketimer, what's your opinion? Comment below:

Also, note that most of the cool stories of successful fund managers involve overcoming mistakes early in their careers. Shit happens. 

Most Helpful
  • PM in HF - EquityHedge
Aug 11, 2022 - 7:47pm

Talk to them. Own it, even if you don't think it's fair. Tell them it will not happen again, and ask them what the path forward is. Honestly, if you lost their trust, they probably would have asked you to leave. The fact that you are still there suggests that this is correctable and that are just frustrated with you. But the last thing they want to see is someone who is defensive and trying to deflect culpability (whether it is true or not). 

Aug 20, 2022 - 7:43am
HFANALYST84, what's your opinion? Comment below:

Personally, I believe the damage has been done and it's time to move on. Winning trust back is hard and it'll take one actual or perceived fuck up to lose it all again. You're better off with a fresh start somewhere else. 

Aug 23, 2022 - 9:44am
morgantire, what's your opinion? Comment below:

Yes, 80% chance the damage is done and it won't be possible to win back trust...however, what's the downside in trying to have that conversation before you leave? There's at least a chance that owning up to your mistakes might get a second chance. Or even if they have irreparably lost trust in you, having an honest conversation may help discover a mutually agreeable exit path where they'll at least provide good references to your next job or whatever.  

Worst case, it'll be an akward conversation and doesn't get you anything...but if you're already thinking they might be able to fire you anyway, then you're no worse off having an honest conversation now, so why not give it a try? Nothing to lose. 

Aug 20, 2022 - 11:31am
Anchor, what's your opinion? Comment below:

People talk about this sort of the thing being worse at MMs, but imo while there is less leash for mistakes, the structure/objectivity of attribution and performance measurements removes the subjectivity aspect and on the whole you are more likely to be held accountable for your mistakes and less likely to have differences in perception btwn you and PM about your performance, since it is measured more frequently and robustly 

  • PM in HF - Other
Aug 24, 2022 - 9:07am

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