How do you figure out which equity investing style fits you best?
I often see people say that when choosing between different styles of equity investing, you need to understand your own strengths and what type of thinking you enjoy.
For example, maybe someone who enjoys thinking about positioning, expectations, and the psychology of other market participants would prefer a MM HF environment, while someone who enjoys deeper fundamental work might prefer LO.
For people who have worked across different investing styles, how do you actually figure out which one suits you best? Are there particular personality traits, strengths, or ways of thinking that tend to fit certain styles?
Curious how people identified what they enjoyed most, especially early in their careers.
You learn the process you’re exposed to. Many PMs at MMs have processes which are alien to each other.
LO vs HF tends to be more about lifestyle than a firm commitment to an investment philosophy
This. Most people learn what they're shown at the place where they happen to land.
This whole "dating" for an investment style that aligns with your values as if you were looking for a girl to marry happens a lot less in the real world than WSO would make you believe.
Ok boomer ty input but sounds like it’s a skill issue. Based on valuable input from chimps here, my CV is as follows:
- 2+2, btw chose an LMM ofc cuz I’m a grinder hunting for alpha vs MF PE chumps who just wait around for Lazard CIMs smh
- Tiger grand Cub, generalist duh, runs 225 net long (the 25 short is all baskets)
- Tiger great granddaughter Cub industrials specialist only 215 net long (the 35 short is all indices), named as such as CIO is female #meritocracy #eattherich
- Harvard MBA, needed a reset after CIO went transgender and LPs redeemed given no longer ESG/DICE mandate, also Ackman went back to school so why can’t I?
- Point72 experienced associate, graduated top of class with my CART/DASH pair, JG was in tears by the end
- Placed straight into LaunchPoint sub PM with $30M carve, had to switch to fins for this dream seat, unfort hit drawdown on Day 182 with 69% deployed Sharpe of 0.5, sigh always knew the PM was the issue
- Merger arb at Pentwater, now we are talking true uncorrelated alpha, got FT journalists and FTC pensioners in my speed dial
- Stat arb Verition pod next, how different could it be as I’ve done arb already, math ez bro
- Convert arb at Weiss next, oops turns out arb is quite different but leveraging my LMM PE background to score on debt trades
- Nabbed by Jain for rebal team, pod blows up before 1yr non compete is up
- Loomis Sayles LO seems better lifestyle tbh? Back to my generalist roots better anyway, think that's the best style for me
Fairs. So it's mostly just luck?
This is the case for most careers, mind you. Most people don't feel a passion for actuarial science or tax law straight out of college.. life takes them there and after years of doing it, people get good at it and even enjoy it.
Doesn't mean just let yourself drift and see what happens. But this pressure people are made to feel to decide which micro-niche to pursue at age 23 is absurd.
You read books and visualize what style fits you the most. A better way is to invest your own money and see what suits you the best. I tried day trading, technical analysis, rule-based algorithmic trading, basic to intermediate option strategies, etc. and find that the old school "value investing" feels most natural to me.
where ever you can get a job tbh and no not trolling...
Haha makes sense
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