How easy is it to move strategies (L/S to SM, event or LO)
Currently working in IB as a mid/senior assoc in a Tier 1 BB (ignore title).
Got an offer to do L/S equity and work directly with an experienced PM (think 10-15 years in the Industry, ex C/M/B), covering the same sector I do now in banking.
Fund in question is a small multistrat in the 2-4Bn AuM range
I had been pursuing the move to public equities for a while, as I am definitely not learning anything anymore in IB since at least a year, I don't like process work and covering clients. I enjoy researching about companies, doing fundamental analysis and modelling work, and ultimately be on a path to take risk.
However, I have some doubts if this is the right fit for me. Believe the PM is great, but I might not really enjoy the L/S strategy (i.e., trading quarters) vs investing with a more long-term view. PM comes from Big 4 MM after all and I assume will be reflected in WLB and investing methodology (for the good and for the bad).
Honestly, on paper I'd say a LO or a long-biased single manager with a longer horizon would be a better fit, or event-driven / activism given IB background. But there aren't many seats like these available, and less so for people with no buyside experience (particularly with my total YoE)
Wanted to get your thoughts - my feeling was I should take the chance of getting into public equities, learn from an experience PM and ultimately pivot to another strategy if I see this isnt the right fit.
Waiting seems quite risky though as I am not sure I will get another chance to join a public equities buyside seat. Getting out of IB will only be harder, not easy to convince the HH to get me into processes.
Didn't really mention comp as this is not really a priority for me, at least in the 1st buyside seat - more about enjoying the work and learning the ropes, getting the skills and assume money can come later.
Based on the most helpful WSO content, here are some insights and advice regarding your situation:
Transitioning Strategies:
Ease of Transition:
Learning from an Experienced PM:
Concerns about L/S Strategy:
Career Considerations:
Current Role in IB:
Risk of Waiting:
Strategic Advice:
Take the Opportunity:
Future Pivot:
Focus on Learning:
In summary, taking the L/S equity offer seems like a strategic move to transition to the buyside, gain valuable experience, and position yourself for future opportunities in other strategies.
Sources: Q&A: London L/S + event-driven analyst, How to approach LMM PE recruiting?, L/S Credit HF Analyst - Q&A, Why is everyone obsessed with equity L/S, L/S vs LO from a non-monetary perspective
bump
Is this PM now at a second/third tier pod shop (you said 2-4b multistrat)? If so recommend stay away.
Its a small multistrat with 10-15y track record. L/S is their largest strategy - there are 3-4 partners/PMs heading each of the sector-dedicated teams
Sounds like J Goldman
Bump - in a similar situation
Can’t comment on this specific opportunity, but getting your foot in the door in a buy side role obviously has its benefits.
The only thing I’d push you on is you say you feel like a better fit for more long term oriented investing roles but then flag event driven as a space your interested in. Not saying there’s anything wrong with event (I’m at an event shop) but a lot of the strats are def not LT oriented. The reality is given it’s your first buy side role you’d still learn a ton of investment skills that could be applied elsewhere. I think in general, single managers are becoming more open to the idea of hiring former pod analysts (partially a function of that’s where the bulk of the experienced talent is). If you’re truly convicted on a more long term biased strategy (or if by event you meant more of an Elliot type place) you may be better off starting in PE (where these shops like to hire from vs other public equities). Obv all theoretical and tough to turn down the bird in hand. Good luck
OP here, thanks for the reply and very good question.
I believe LT investing fits me better, but among the more "short-term" oriented strategies I'd feel perhaps more comfortable in the ones driven by hard catalyst analyses (merger arb, spins, cap structure events), given my background in IB / transactions. Therefore I thought event would be a better fit than L/S.
For sure I believe the learning opportunity would be huge at this role in L/S and was hoping that getting the foot in the busyide would open me doors in different strategies in the future as well, outside from L/S. Perhaps the move to event is easier than to long term SM investors or LO?
I would say the move from a fundamental role (even pod) into event would be much easier than the reverse (though not impossible especially early in your career). I can’t speak to going from pod to LT SM or LO but would guess it’s not impossible (prob more sm vs long only). Again, doing it earlier in your career (5y in) funds will give you a lot more leeway and will view you as still malleable enough to develop you to their investing style.
If you end up going the event route, I strongly recommend not going for a merger arb focused seat unless you think you wanna do that forever. It’s def the least transferable skill set to vanilla long short of any event strategy given you aren’t doing much more than surface level fundamental work.
I understand your points and agree - think I am going to go the L/S route which is the offer I have in hand, as you say its a fundamental role even if ST investing and the vibe with the PM was good.
I was always clear on not doing PE tbh - has the processy, turning comments angle that I don't really appreciate.
I will focus on extracting the most of the role and get a feel for public markets.
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