HF Pod Shop Life
I have a very different background than a typical HF analyst (namely, I'm a bit older with 7-8 years of work experience). I was IB analyst > mid market PE associate > lower mid market / pe sr associate. I have always considered going over to public investing but have been risk averse given visa issues and the nature of the job. If I'm being honest, I'd love to end up at a single manager, but am realizing many of them prefer to hire right out of banking / very young, or right out of pe (so 2-3 years ago for me). 2-3 years ago I was getting many single manager opps, but now not so many (probably also a function of the market + me being too old / on the private side too long). Pod jobs however as we all know have been around in spades, but I'm not sure I want to turn my life into day trading / extreme short term thinking, and constant stress. Part of me thinks I would enjoy the thrill / adrenaline, but part of me knows it will be incredibly stressful, and perhaps with many volatile earnings years unlike the private side.
I recently turned down a pod shop offer where pay was great but the team seemed awful. I'm currently in another process with what seems like a very promising team. This isn't one of the big 4 MMs, but is a hedge fund that runs market neutral pod style investing.
My questions are as follows:
- If you are a pod analyst, has it been worth it?
- Best and worst parts of the job?
- Avg earnings expectations in the job if you stay in the career for 5-10 years? (Best, avg, and worst case)?
- How do pod people take vacation? Is there a world in which I can take off 14 simultaneous days every year and be "off" beyond just pinging my team updates on my names?
- If I fail out of the job in 1-2 years, where do pod people exit to (if not another hedge fund)? Would love to hear actual stores of people who found a corporate job, went to private investing, or just ran into a dead end....
At first glance, you seem like a very risk averse individual, so not sure pod is a good fit. Generally people that are trying to game average outcomes never really settle into the pod formula.
Will answer your questions in detail when I get a few moments
Appreciate it. I am in a position where the visa stuff is about to clear up, but I just want to understand my downside if things don't go as planned if I take the job. Any insights are helpful
Your downside is you just get whatever signing package year 1, then your base, and 0'd & quit or fired subsequently, sitting out on garden leave on base salary. So its entirely possible to work 2-3 years consecutively on base alone with a string of bad luck. Many will quietly admit having gone through this after they tell you about their big $2M+ year.
Okay
Switching from private to public investing can be a big jump, especially with all the visa and job security concerns. Pod shops definitely have their perks, like the pay, but the stress and short-term focus are real issues.
From what I’ve heard, it really depends on the team and the culture. The best parts are usually the pay and the learning curve, but the pressure and constant volatility can get exhausting.
For every ten IB/PE to public market PMs I've known personally there is one that is a legit all-star. And that all-star would've gotten fired 6m if started in a pod fwiw. God speed.
Why is that the case?
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