Intrinsic passion for money management

Anyone else feel like they're not intrinsically passionate or a "natural" at being good with money (investing, seeing opportunities others don't, etc)?

For those of you on the more senior end of the spectrum, can that passion or sixth sense be developed, or are most who stay and do well in the industry long term the same who probably started out with some natural competence with money?

Comments (18)

  • Analyst 3+ in HF - Other
Jul 3, 2022 - 11:27am

Don't think you need innate talent. You definitely need a continued passion (whether developed or innate) for managing money and a hunger to make PnL. Though I feel like the latter is more pronounced in successful pods. 

Jul 3, 2022 - 12:39pm
angrybanana, what's your opinion? Comment below:

Thanks. And would you say that passion is in reference to passion for the act of managing money more so than passion for just making lots of money? So is it just something about working with money that brings joy to such people, regardless of the outcome? Just like playing a musical instrument may bring joy to an artist?

  • Analyst 3+ in HF - Other
Jul 3, 2022 - 4:02pm

Tough question. For me it's both. I want to be paid but at the same time I enjoy the process. After doing this job, I don't think I could ever do another job. It's actually pretty fun to put risk on. That said - a ton of people I know are successful at the game and just see it as a means to get paid 7figures and live their life. Also a ton of people live and breathe markets, work balls hard on their thesis every time, and have been blown out from several platforms. Bottom line is it's really hard to tell but if you enjoy markets and making money - shoot your shot.  

Jul 4, 2022 - 4:09pm
angrybanana, what's your opinion? Comment below:

That's interesting and requires an investigative character that likes solving puzzles. Were you good at or interested in puzzles when you were little/growing up?

Jul 16, 2022 - 10:01pm
HFPM, what's your opinion? Comment below:

I'm similar to this, though I was very much into competitive tactical and strategy games growing up.

There's nothing quite like the feeling of (legally) knowing something no one else in the market has figured out yet and knowing exactly when they will converge.

Yeah maybe a bit more than I meant. Nothing I bet on is a certainty. Nor do I have insight into exactly when I'll be proven right. Mostly takes luck on that front tbh. 

maybe I'm a dumb dumb or something else. But I'd never be able to describe my career experience that way. 

Most Helpful
Jul 16, 2022 - 11:47pm
hominem, what's your opinion? Comment below:

The founder of my fund is a guy who is truly passionate about stocks. He was the kid who was investing at an early age and got a real head start. To this day, he just loves the challenge, learning about businesses, and finding opportunities whether they are more off-the-run or just in plain sight. But I don't think that its his passion for stocks that helps him be good at making money, because there is a difference between being a good business analyst and being good at making money. He is good at making money because he is naturally an out-of-the-box type of thinker. He was the kid in college who bought a pizza at the local store for $15 and then sold it by the slice to the guys in his dorm for $5 a piece. That kind of thing. So I feel that it is hard-wired from an early age. 

That said, I do think the people who have a real knack for making money is a minority of people in our industry. The majority of people I know in the industry are very down the fairway. But they are smart / competent (as we all are), have developed a sound investment process, and have been able to turn over enough rocks to figure out what works and doesn't work for them as an investment style (btw, this is also why I think that low velocity type of funds are great lifestyle funds but probably not great places to learn how to invest since the only way to figure all of this out is to make a ton of mistakes). 

TLDR: I don't think the sixth sense can be developed, but that doesn't mean that there is no place for you in the industry. 

Jul 17, 2022 - 7:06pm
angrybanana, what's your opinion? Comment below:

Labore corrupti ut dignissimos voluptas eos consectetur ut. Aut molestiae aut impedit. Facilis et sit quae eius nemo et.

Odit ducimus est quaerat voluptatum enim eius aut. Aliquam eveniet aut temporibus recusandae autem quos aut. Molestias impedit eos sapiente dolorem labore.

Start Discussion

Popular Content See all

Career Advancement Opportunities

August 2022 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • AQR Capital Management 96.8%
  • Citadel Investment Group 95.7%
  • Two Sigma Investments 94.7%

Overall Employee Satisfaction

August 2022 Hedge Fund

  • D.E. Shaw 98.9%
  • Magnetar Capital 97.8%
  • Blackstone Group 96.7%
  • Two Sigma Investments 95.7%
  • Citadel Investment Group 94.6%

Professional Growth Opportunities

August 2022 Hedge Fund

  • D.E. Shaw 98.9%
  • AQR Capital Management 97.9%
  • Point72 96.8%
  • Citadel Investment Group 95.8%
  • Blackstone Group 94.7%

Total Avg Compensation

August 2022 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (21) $476
  • Director/MD (11) $434
  • NA (5) $306
  • Manager (4) $282
  • 3rd+ Year Associate (23) $275
  • Engineer/Quant (60) $269
  • 2nd Year Associate (29) $251
  • 1st Year Associate (71) $192
  • Analysts (212) $178
  • Intern/Summer Associate (18) $130
  • Junior Trader (5) $102
  • Intern/Summer Analyst (228) $84