Is the grass really greener? (LSD millions SM Senior Analyst hopping to C/M/BALY/P72)
I am at a top SM where I have made LSD millions a year for last three years, in a very low net risk framework. Pay is good on absolute basis but sharing ratio is very low. We run higher vol and P&L in my coverage has been >$75-125m a year, Back-calculating sharpe from volatility and book size, 1.5 to >2.0 by year but looser factor constraints. Not from betting on AI. I am only analyst in my coverage. My PM rarely if ever goes to my conferences, most of my coverage would not recognize him. I am 32.
Job is a grind, QoL is good, I do not wake up in existential panic about getting fired but there are lots of things I don't like. I want more autonomy, I want to win more, I want a more direct slope. The PM covers a lot and we are slower than we used to be.
Job security is pretty good at my shop even for analysts who are underperforming. Analysts at my shop do not have their own carves and are prohibited from owning own track, so I have to jump to a Senior Analyst seat at multi-strat if leaving. I would want to stay at least three years at place I am jumping to.
I am at glass ceiling currently at my shop, it is one-PM model, so I am looking at jumping and getting higher sharing ratio.
I think my process is differentiated and there is alpha in my coverage. Let's assume I found a PM I liked, respected, with track record of managing risk and not blowing up...
Is the expected value actually higher in a pod seat? I understand the GMV*volatility*slope*sharpe math, but am thinking about job-security trade off. I want to make this jump. I would like someone on the other side to tell me if I am being irrational.
What kinds of deals do people get leaving this seat? How common is my set-up? How many senior analysts have you seen in seats like mine take the jump and fail? How about succeed?
Interesting how despite being in the industry and probably having a great buyside network, you’re resorting to WSO to answer these questions vs asking peers…shouldn’t be a problem if you’re at a “top SM”
Clearly you’re a sharp and successful guy who understands the payout. Anecdotally have heard of some great guarantee packages for folks with your background
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