If my goal is to maximize for money in years 5-10 of my hedge fund career, is it better to go directly into a pod shop or start at an SM (particularly very strong / lean SMs like Anomaly / Palestra / Alua) and transition over later to a Citadel after 2-4 years after I’ve bridged the gap in skills from private to public investing.
I’m assuming you have a higher ceiling in the pods, but at a place like Anomaly / Palestra / Alua, can I make comparable money in years 5-10 with similar performance (not same % but adjusted for what is considered good / great at both types of funds) or will it always be higher at a Citadel?
For context, my background is 2+2 (Banking and PE)
Start at pods if you want to make $$ at pods
would worry about being good more than where you first work though
The answer truly is no, if you’re maximizing for comp start at a pod. Not going to beat around bush but I thought exactly what you proposed 5-10 years ago and regret it a lot.
Also…Alua anomaly palestra? What? Alua is a family office that will never scale into a large fund, anomaly and Palestra are okay.
Assuming same performance, you will make more at a pod year 3 and onwards than you will at a SM. I’ve ran every permutation haha. Start at Citadel, grow up in the model, find a great team, and you’ll have an amazing career
Alua is mostly outside capital. Look at IAPD. What is this info from
No. It’s not. >50% comes from the founders
Go to a pod if you have confidence in your own idiosyncratic ability. Go to an SM if you have confidence in HF industry riding beta
SM was the answer 10 years ago, pod is the answer today
which MM do you have an offer from (citadel?), which SMs? pm matters a lot.
No offer from Citadel - I have avoided pursuing Citadel because I heard bad things about the two PMs who reached out. Vs. a fund similar to the ones I mentioned in the post (Anomaly, Palestra, Alua), but not in an industry seat I necessarily prefer. I think that ending up in a pod shop is the goal, and there are elements of going to an SM as a starting point that feel comfortable to me (high entry comp, more professional development, more similar to PE DD as I learn about public markets). It feels better on a risk-adjusted basis vs. diving into a Citadel where I may suck and not build the skills quickly enough in that environment.
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