First year analyst about to be promoted to second year - interested in recruiting for multi-managers. Wondering how often do seats open up at the associate level (either 1 or 2 years of banking or sell-side ER).

Recruiting is a never-ending process at our firm. There are always analyst seats to fill for the following reasons: New PMs join and need to build out their teams. Senior analysts who had a carve get promoted to a junior PM seat and need to hire analysts. High performing PMs get more capital and then need additional analysts when expanding coverage. Analysts go to a competitor and need to be replaced. Analysts get fired for poor performance. Analysts leave in cases when their PM gets fired but they can't find another seat internally in their sector.

Yes, the scenario you mention is certainly more common. However, I have seen analysts get picked up by other PMs (who were already looking to hire) by going through an internal interview process. This is a possibility because several of the big MMs track analyst ideas in a system so that the firm has an objective way of measuring talent that is independent of how a PM actually manages his or her book. The MM then can choose to hold on to analysts who had good ideas that their PMs didn't play, etc. or that had good ideas but the team blew up in a different sub-sector.

There are a lot of reasons, but the main ones are: Macro RV is ruled by monopoly rents on balance sheet - a few senior traders at the big firms have claims on that resource, and it is difficult for a new trader to come in and get much. Traditional Macro has incredible scale, so is inherently incredibly top heavy. Just think about how many companies there are to cover vs. countries or differentiated macro themes you can put on. The best traders get to run massive macro risk. It is a very difficult skill to learn and train at with no natural place anymore.

How often do seats open up at multi-managers?

Analyst 3+ in HF - EquityHedge

Anonymous

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Recruiting is a never-ending process at our firm. There are always analyst seats to fill for the following reasons:

New PMs join and need to build out their teams.
Senior analysts who had a carve get promoted to a junior PM seat and need to hire analysts.
High performing PMs get more capital and then need additional analysts when expanding coverage.
Analysts go to a competitor and need to be replaced.
Analysts get fired for poor performance.
Analysts leave in cases when their PM gets fired but they can't find another seat internally in their sector. The firm will still have to put that former PM's capital back to work, which leads to any of the first three opportunities on this list.

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Research Analyst in HF - EquityHedge

Anonymous

Without exaggeration, seats are always open.

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How often do seats open up at multi-managers?

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