How do you assess pods at MMs during interview phase?
I'm currently interviewing with some of the household MMs (Think Citadel, Balyasny, P72, Millennium, Schonfeld, ExodusPoint and a few others) for their semi-systematic roles.
Throughout the processes, pretty much everything seems fine (PMs seem to have had good careers from looking at LinkedIns, analysts/quants seem pleasant to talk to and are accomplished). However isn't there likely to be adverse selection in this pod matching phase? (i.e. good teams likely have less turnover and so are less likely to interview so the pod you do get matched with is likely to be one that is "bad"/has high turnover.)
With this in mind, I want to know how one gets more of an idea of what pods are really like and how to accurately judge whether shit has just hit the fan with the pods I'm interviewing with and that's why I'm being interviewed.
Ah, the pod system at multi-manager hedge funds (MMHFs) like Citadel, Balyasny, P72, Millennium, Schonfeld, and ExodusPoint, can indeed be a bit of a jungle to navigate. You're right in thinking that there could be some adverse selection during the pod matching phase.
Here are a few tips to help you assess the situation:
Ask the right questions: During your interviews, don't be afraid to ask about the team's turnover rate, the reasons for the current vacancy, and the performance of the pod. You can also ask about the team's culture and working style to get a sense of whether it would be a good fit for you.
Do your homework: Look beyond LinkedIn profiles. Try to find news articles, forum discussions, or other sources of information about the fund and the specific pod.
Network: Try to connect with current or former employees of the fund who can give you an insider's perspective. This could be through formal informational interviews or more casual conversations.
Trust your gut: Sometimes, your instincts can be a good guide. If something feels off during your interviews or interactions with the team, don't ignore that feeling.
Remember, every pod is different and what works for one person might not work for another. It's all about finding the right fit for you. Good luck with your interviews!
Sources: Case study interview for MBB consulting - 24 of my best tips on how to get in, Demystify the LT SM / tiger cub / "PE approach" vs. MMHF / pod shops?, How to approach LMM PE recruiting?, Ask me anything: Project Leader/Engagement Manager/Case Team Leader at MBB
1) PM Tenure - # of years at firm as PM. Prior experience at others shops. You can assume if he was a PM elsewhere for 3 years then left was probably fired.
2) Prior experience with analysts, analyst tenure on team, talking directly with prior analysts
3) Talk to sell side sales/analysts who may know the PM
Agree on 2 and 3 but not on 1.
Yep, left one after a year despite positive performance because of a better offer for a bigger seat. Brought the offer to my boss who told me to take it.
I would literally ask how much pnl do you target per year - what is your track record of generating pnl
Also if recruiting right now ask them how their year has been
Some people will say don’t ask that - but you don’t want to join a sinking ship and you want to see that they have a repeatable process
If it’s a new pm - I would ask how did u make money at your old place - why did you leave and come here
Every PM will be able to spin some story on their track record. That’s how they got their seat most likely and that’s what they’ll tell prospective analysts.
This is spot on. Seen way , again, way too many people join a sinking ship this yr
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