I am currently interviewing with a mid size fund. 2 close friends and a friends father are in the industry and they say that the turnover is absurd. Even Bridgewater said that they have 40% turnover of employees within their first 18 months of joining if I recall correctly.
My issue being that I am not from a top-tier, more of a second tier bank. Is the turnover as bad as this sounds? I don't want to have to go back to square one because I don't have the experience at the bulge bracket backing me up. I know a great analyst can get hired anywhere, but having a brand name on your resume does help. I would like my next switch to be a stepping stone or career choice (eg 2-5+ years of working), then again it is the world of finance.
Thanks.
Depends on lots of factors. Multi-manager models have high turnover (ex-SAC, Millennium, Citadel's Surveyor). Even the PM is gone if he doesn't show results in 2-3 quarters.
Single PM models depend on the PM's culture & mood, but usually are better. Small teams of 3-4 for many years, if the fund does well, almost 0 turnover.
Don't worry about your bank, it's about your fund's reputation after you join. With that said, I'd focus heavily on diligence of the PM & team.
Wow. That seems very aggressive, 2 to 3 quarters? Is this for a particular strategy or size?
From what I hear Bwater has a very brutal culture and low tolerance for non-conformists, so it's not surprising that turnover is high there amongst new-hires, who are unfamiliar with the culture.
I would say at my HF, the turnover rate is pretty low amongst front-office guys (maybe 10% a year). Turnovers can vary. If compensation, work-life balance, and culture are good then there's less reason for employees to jump ship.
It depends... At my place, there is minimal turnover.
I think it comes down to culture and investment style. I'm fortunate to be at a place where people are very patient and willing to take above average volatility, so there is very limited turnover, but that is probably the exception rather than the norm in the industry. Wouldn't worry too much about having to go back to sell-side, as @SanityCheck said, the reputation of the fund is more important once you've made the move.
About the same with our fund as @"thewaterpiper" . Generally, the turnover at my firm is 0.25 per year ie; one person generally leaves every 3-4 years. Culture is pretty good here, no reason to jump ship.
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