Hit drawdown, strategy being closed. Looking for advice on how to proceed
Ignore title. Did 2 years IB, started at a MMHF ~6 months ago, just got news from my PM the strategy is being closed as we hit our drawdown. No discussion / capital cut — straight to winding down.
PM expressed he wants to continue working with me and is in discussions with other funds already. Fund told me they will try to find a new seat for me within the firm. Not sure where to go from here, options are basically:
Stick w PM and hope he gets something quickly, risk of the same outcome again (I love the guy but he is a bit of a cowboy)
Accept internal reallocation, secure choice but risk sector change / bad PM
Recruit on my own, obviously most risky
Anyways — still processing this so if anyone has been through anything similar and has words of encouragement, that’s appreciated…
Best shot is to play both sides until you know for sure whether you are guaranteed to have an internal relocation or an external offer. From your phrasing neither one sounds like a firm offer. What kind of non-compete do you have?
Yep fair. 6 month non-compete which obviously makes things more murky. Not sure if there is a rationale for waving given 6 month tenure
If they can't reallocate you internally, most places will waive or shorten the noncompete.
If he's a cowboy, I say pass. The fund that I worked at blew up because the dude who ran it couldn't control himself. Me and another guy were bringing in ~300K a month PnL, which isn't a lot, but he put on a huge size overnight on the NG widow maker spread, got in trouble with the clearing brokers then canned us. You don't owe him anything just because he's a good dude. The other PM is clearly still there for a reason. I say stay and learn so you can expand your knowledge.
what was the NG spread?
Mar-Apr. It's called the widowmaker spread for a reason. Lol. I'm pretty sure this is how Amaranth Advisors collapsed.
that was a fun rabbit hole, thanks man
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