9 Comments
 

Some teams with only 1 PM at MM HF can have, for the best, single digit billion book.

So, 2 PMs for 500m doesn't look crazy. You should instead look at their career/track record...

Risk of implosion is much more correlated to their strategy instead of AuM, IMHO.

 
Most Helpful

2 employees or 2 IP?

2 employees would be a red flag for me as sales/admin/MO/BO/compliance will take most of their time.

I was in a small fund with 500M AuM and a small support team, and I was frustrated not to be able to discuss investment ideas because they were busy with admin/other stuff

If it is 2 IP plus decent support team I would go ahead.

500M$ fund can be shut down of course, but as other said great opportunity to be the number 3 and if fund is successful it will be great for u

 

Sounds like a good opportunity. I worked for and interviewed for a couple of hedge funds with AUMs below $500m or smaller, and what you want to look for is track record. The fund won’t blow up suddenly if a good chuck of investor capital is the manager himself, or if the investors are pretty risk adverse. Read their ADV and see if it’s an investing strategy you like or believe in.

I don’t think it’s gonna blow up and if you’re confident in your skills and manager skills then go for it. You could be a very early entry to a very successful fund in the future.

 

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