How realistic is becoming a hedge fund billionaire nowadays?
I'm a high school senior in Canada and I've been enthralled with the idea of starting a hedge fund. My goal in life is to become a billionaire just for the sake of it, as I don't see anything better I can do with my life. I've laid out my plan as such:
Ivey Business School -> 2 years at BB -> HF analyst -> HF senior analyst -> HF PM -> Leave and start own fund
I don't think I'd be able to work at a tiger cub, as based on what I've read you'd first have to finish a 2 year stint at a MF/UMM PE. Given that I'll be attending a semi-target at best, I'd have a hard time landing such offers even if I worked at a reputable bank; hence I'd have to aim for funds where pedigree doesn't matter as much, such as Citadel or Millenium. Correct me if I'm wrong.
Furthermore, I don't know how realistic is it to make PM at a hedge fund, given the short average tenure and high turnover rates in the industry. Suppose I get fired from my job as an analyst. What happens then? Would other hedge funds of the same quality as the one I've worked in before be willing to hire me, or would I remain jobless, or have to accept an offer from a "worse" hedge fund? Even if I don't get fired, how realistic is climbing the ranks of a top hedge fund and making PM?
Finally, suppose I've managed to make it to the top and have worked a few years as a PM and have established a respectable track record. How much capital would I be able to raise from investors? How much would I pay myself? How old would I be? Would the industry even have room for another successful hedge fund, given its apparent over saturation? Would this plan make me a billionaire?
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That's why I'm here. I'm deciding between tech and finance. If the HF path isn't at least somewhat viable, I'll commit to tech.
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High schoolers make these posts all day on WSO but don’t know a thing about the market and can’t pitch a single stock
Yeah but who can actually pitch a stock? And what are the odds it actually works out better than SP500 over time. Or the odds you have the conviction and balls to make any real money from it. This guy is closer to you then you are to a HF. Buddy’s just trying to ask questions why you gotta flame him lol? With how competitive everything is who can blame him for trying to think ahead.
A lot of people can pitch a stock, it’s the bare minimum required to get a long/short job lol.
The point of pitching a stock is not to beat the S&P, don’t know how this 2024 and people *still* don’t know why hedge funds exist.
Although I do agree that starting earlier is better, if you haven’t practised doing what the job is (modelling and stock pitches) then saying you want the job doesn’t mean anything.
I’m a 2nd year analyst at a pod lol, I spent 1 year at an EB prior (hence my title). If someone makes these kinds of posts on WSO then the least they can do is understand how the market works and follow a few stocks. As the other commenter said, the point of a HF is to provide risk adjusted returns, not to beat the S&P. Not flaming OP with my original comment, just providing some clarity on how it’s easier to fantasize about being successful at a HF than to actually put in the work and learn.
Hard to become billionaire in HF now. Think of upside cap at $100MM
You’re not gonna make it bro
Why?
If you look at the profiles of people who were successful none of them were just “motivated to be a billionaire because it’s cool”. You’re gonna need more than that to make it
While money is a great motivator, don’t go into something purely for the money because the hedge fund managers that have made that kind of money love what they do
How realistic is it for a high school basketball player to make the nba?
It's statistically way easier to make the NBA than become a HF billionaire.
Possible if youre in the perfect seat at the perfect time (eg Citadel gas desk during EU energy crisis)
I bet the kid they hired onto the desk a couple years back during that is laughing
What kind of insane goal is this first of all? Like are you going to be depressed when you are only a multi-multi-millionaire? Instead of thinking about your career track 10 years from today, start trading stocks and find out if you’re even capable of such things…
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