Is it not worth doing HF unless at a pod/mkt neutral shop?
Recently have been getting this explicit advice lately — don’t even bother working in L/S unless at an MM. reasonable? Curious for commentary.
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For a career that focuses on differentiated thinking, we sure do get a lot of the blind following the blind
So this is what peak pod looks like
Dude idk like if rates stay high you can see 2x the allocation into MMs from here as PE liquidity needs to get parked somewhere. Obviously this doesn’t address the alpha decay / talent problem, but it does seem like a good model to work in from a supply/demand perspective.
bump. would people really not take an offer at lone pine, pershing square, or top tiger cub/sm because it is not market neutal investing? because that is what this advice implies
was more thinking out of ugrad is the pod FT a move you do 10 times out of 10 vs. some of the 3-8bn SM L/S young bucks get a shot at
You’re pretty stupid man. Try thinking for yourself once in awhile
It’s all a question of stability. At an SM, your future earnings are probably more consistent over a long duration. At an MM, it’s extremely lumpy. The problem with SMs is that you don’t get paid insane money. It’s like a PE/banking type of comp 90% of the time except when you get some positive / lucky right tail outcome. At an MM, it’s more difficult to forecast your future earnings stream.
Will die on this hill. Still think the marquee SMs (even if past their prime) are better ramps for HF than MM.
It's not hard to land a MM analyst role from a decent SM. Your development won't be materially set back vs. MM peers. Kids that go straight to MM with a bad first PM are fucked.
Unfortunately the last sentence is very true, and many of these kids can't tell good from bad PM.
Do you have advice on how to find a good PM?
Got similar advice too recently from someone with 25 yrs experience in the industry... curious: is there any generalist role in MM pod? or all of them are sector specialist?
Good Q. Never had a generalist L/S seat pitched.
I guess it's easier for the MMs to manage their exposure to "uncorrelated alpha" if the pods are kept specialized.
Generalist seats do exist, but they tend more to be a PM who has expanded coverage into a few different industries adjacent to their original one, rather than pure generalist seats.
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