How quick are MMs to pull the plug?
On a team at a big 4 pod shop under a pretty tenured PM. My team is trending towards finishing the year at a 1-2% draw on GMV. Is this bad enough to where my team is in jeopardy? FWIW my PM has been here for a few years and I think this would be the first down year.
Separately are my chances at any sort of bonus screwed? I have personally had a good year but those gains are netted out by the rest of the team.
Pretty depressing stuff
Lol no, you’re good
If you are at C/MLP/Point then you are 100% fine (unless your pm quits, not uncommon). Bonus question is fair; it depends on how senior you are and judging from your post you are prob relatively junior so you will still get a decent floor (esp since you said your PM is pretty senior there so he will have some room to pay retention bonus)
If your pm quits or gets bought out elsewhere, at C/P, you will 95% of the time be placed on another team.
Won’t be zero. I don’t work at a pod, but have heard for juniors at C, even if 0 or very little bonus pool, the business head speaks with your PM/analyst and the firm pays you a bonus (a very, very fair bonus I’ve heard).
Also, most PMs have some retained earnings set aside from previous years. As always the bonus for a junior person with no PnL linkage is discretionary/up to the PM, so it’s completely dependent on the PMs perception of your performance/contribution. 0 or slightly negative PnL on your senior analyst’s carve-out does not mean bad performance. Good process is the goal here.
My friend was in a slightly worse situation last year. PM was relatively new and didn't get fired. They're killing it this year. Stay the course.
50/50
Also interested in the bonus portion, can anybody else elaborate if its common to get a bonus in a down year if personal performance was strong and you do not have a formula?
At a pod shop your PM gets a certain percentage of his profits. If profits are negative, there is nothing for him to distribute, unless he wants to pay out of his own pocket. It is possible that the PM has negotiated a "war chest" to attract and retain talent, which would allow him to still pay a bonus for people who were recently hired.
Regarding "pulling the plug": do you know your pod's stop and half stop? Some funds are known to close pods way before reaching their stops though, so it really depends.
Partially accurate. Indeed bonus pool will be zero, but if he has goodwill with management, he can make the case for a "loan" in order to pay team members who might be at flight risk.
Given the PM seems to have had a few good years prior to this, this sounds relatively doable.
At what point do you get fired? Down 5%?
It’s typically capital cut in half at 3-5% and fired at double that
to be clear, GMV loosely converts to HWM right? so your capital gets cut on 97-98% of HWM?
What happened to the “market can stay irrational and deviate from intrinsic value” ?
Job isn’t to be an academic and figure out intrinsic value, job is to make money on stocks
my friend...you're going to be just fine:)
you will still get a bonus
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