How often do PMs look to replace/upgrade their analysts?
See title. How often/common is this? Hear stories of a PM who isn’t happy with their XYZ sector analyst, so interviews basically all their peers analysts who they respect to see if they can replace XYZ. If no one bites they keep working with the analyst but if someone does they bring them on (often in a more senior role), listen to them more, have them fight over coverage until XYZ is frustrated/leave.
In this industry, whether pm, analyst or something else, you should assume your performance for this yeah is essentially interviewing for next year.
100% this
Not sure why you got MS
The propensity to replace (and the level of stop loss) is determined by the institution (if contractual) or PM intangibles (personality / relationship).
Depends on the PM. This also works both ways. If a PM does this they're more likely to get lower quality analysts. Think about it: why would a superstar analyst want to join a team/fund where they have to take the risk of getting replaced after a subpar stretch + the already big risk of the pod/fund blowing up? Unless they are just getting better terms (i.e. need to be compensated for taking on additional risk).
One offs not a big deal but if a PM is known for churning analysts that is a big red flag IMO.
Definitely agree. I’m not saying any one should actually churn analysts (or firms churn PMs), but if you view each year they way I describe, you’ll have more longevity bc you’ll leave it all on the field.
I do it in a very formulaic way. Once a year (secular bull market), with this market, I do once every quarter.
We do PIP as well but tbh not seeing a lot of people can pull it off once they've been put under review.
Last year no one was fired, this year 1 has to go (so far).
Also depend on the junior him/herself.
I once redeployed one guy from my desk to investor relations. He couldn't pull it off as an analyst on my team, but was a very eloquent person, and fairly good looking. Plus, he understood the strategy well since he worked on the investment team, he could answer a lot of investor probe into the details of strategy. So I thought well this guy could do some client management work then. He accepted the pay cut obviously, and he also knew he didn't enjoy a risk-taking role, so yeah a decently paid 9-5 gig for him.
Once a quarter? Why would anyone want to work for you if that’s the track record?
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