Highest EV publics careers?

If you're aiming for the highest expected value (EV) public markets career while balancing your love for stocks and maximizing right-tail compensation outcomes, here's what you should consider based on the most helpful WSO content:

1. Pod Shops (e.g., Citadel, P72):

   • Why Pods? Pods offer better economics and a clearer career path for those who want to bet on themselves. You can manage significant capital early in your career and have a real path to becoming a Portfolio Manager (PM) if you're good.
   • Meritocracy: Pods operate on a "kill what you eat" model, meaning your compensation is closely tied to your performance. This setup maximizes upside comp for high performers.
   • Alpha Generation: Pod analysts are sector experts, focusing on a limited universe of 30-50 names. They leverage real-time data and alt data to extract alpha, which aligns with your passion for stock picking.
   • Downside: Pods can be intense, with a focus on short-term performance and high pressure to deliver results.

2. Scaled Single Manager (SM) Hedge Funds (e.g., Tiger Cubs):

   • Why SMs? These funds often employ a "PE approach to public equities," focusing on longer-duration investments and high-conviction bets. If you enjoy deep research and understanding businesses at a fundamental level, this could be a great fit.
   • Career Path: While the economics might not be as immediate as pods, SMs offer better career downside protection and a more stable environment.
   • Downside: It can take 7-10 years to meaningfully participate in the economics of the fund, and the path to PM is less defined compared to pods.

3. Long-Only (L/O) Funds:

   • Why L/O? These funds focus on high-level, big-picture trends and employ sector/factor-based strategies. If you prefer a less intense environment and enjoy understanding broader market dynamics, L/O could be appealing.
   • Downside: Compensation and upside potential are generally lower compared to pods and SMs. The environment is often described as "sleepier," which might not align with your desire for high EV outcomes.

Recommendation:

If you're swinging for the fences in terms of compensation and enjoy the thrill of stock picking, joining a pod shop would likely be the optimal choice. It offers the best combination of high upside, meritocracy, and alignment with your passion for stocks. However, if you value stability and a longer-term investment approach, a scaled SM could also be a strong contender.

Sources: Demystify the LT SM / tiger cub / "PE approach" vs. MMHF / pod shops?, Leaving MFPE for MMHF seat?, L/S vs LO from a non-monetary perspective, The Efficient Career Hypothesis: Almost All Jobs Are Priced In, Most Profitable Career Path in CRE