Is activist HF out of undergrad basically impossible?
Basically title. I'm interested in activism but seems everyone comes out of a top bank or 2+2 w/MF PE. I've seen one guy on linkedin who seems to have gotten hired out of UG but has a master's. Is it basically impossible to land an activist seat out of a 4 year undergrad progran?
Heard of people interviewing at some as undergrads but unsure if they landed.
Pretty sure third point has a summer analyst program. Not sure if they offer for FT tho.
I think their SA is sophomore diversity
People need to understand there are so few pure activist funds. Even funds formerly considered activist like 3rd Point, Elliott or Pershing Sq, only 10% of their investments are activist any more.
Funds like Trian might still be 100% activist, but they take no more than one new activist position a year. You guys need to stop considering activism an asset class or a realistic career path, because there are no more than a couple of open activist analyst seats each year. Everything else is conventional investing with the ocassional activist situation.
Analyst at a $3B activist fund here. I'll take a stab at this question.
Most funds like ours are thinly staffed at the investor level. Yes, this is on purpose. Simple math: Keep AUM/head high, comp can stay high. As a result, we need every investor to pull their weight. While we all would love to have some younger folks to mentor, we just don't have the time. I serve on two boards and I am the most junior investor at the fund. Typical background for funds like ours is: Top 25 undergrad + 2 years IBD + 2 years PE.
Without business analysis, financial modeling, or legal experience, you won't be able to pull your weight. Go get some experience, explore interesting business models, truly mold your investment style and determine you really want to do this. Activism isn't for everyone. It may seem fun, but to be good at it for a long time, you need the right personality, in addition to having the technical skills.
Hope this helps.
Can you comment on how comp works at these funds? Are you paid based on how well your ideas do, or how well the fund does? Do you get to “own” ideas that you source / work on and then get compensated based on how it performs.
Would appreciate some number ranges for analyst / sr analyst / partner levels if possible
Don't know why this got monkey shiz, it's a valid question.
Comp is usually a market base + a bonus based on short term performance (cash) + bonus based on individual idea contribution & overall fund performance (cash + carry). I have about 6 years experience (2 years IBD, 2 years PE, 2 years at a long-oriented HF), my all-in was starting at ~$400k. I did take a pay cut coming in, but it has more than paid off as I make significantly more than that now.
The mix on the long-term comp is much higher for senior folks, although I don't have specifics to share there.
How did you know activism was right for you, as opposed to long/short or another strategy?
I'm a value guy at heart, I think that's the #1 trait activists share. But I am also incredibly impatient, and have a bit of a bulldog in me. I don't go looking for a fight, but if you come in my yard, you better run. Every good activist relishes the fight, although the best don't go looking for them.
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