Joined a boutique HF straight out of college, next career steps?

I joined a sub 150mn AUM HF straight out of college as a junior analyst. I like my work a lot- I work directly under my CIO and I get to pitch my own ideas as well. However, the difference in the experience set of my team members compared to me (all 10+ yrs of experience) is significant, and while I am given the space to look at investment ideas on my own, get plenty of 1-on-1 face time with management teams, and I have some voice in our research meetings, I am unsure of what my career trajectory at the firm is. I am also not sure what the market rate of my job is, base comp matches industry average for a jr, analyst, but I make little to no bonus. And because my firm is small, I am unsure of how I should gauge my performance relative to my team in order to discuss my compensation and next steps with my CIO. Pls offer me some advice on how I should navigate this.

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There's a 95% chance the situation is the following: at $150mm, your fund is small. If there are 3 senior people above you, none of them are getting paid what they believe they deserve. The pyramid is clealry inverted for a fund of this size. The partners are presumably laser-focused on raising new money, and in posting returns that attract fresh money. If they succeed in that, everyone will be happy and perhaps there is a path for this junior analyst to make partner down the road.

But until there is visibility to raising the level of AUM, the CIO is in no position to make promises about partnership, or frankly to spend much time thinking about the career path for a 23yr old.

 
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OP - you do not have an uncommon problem.

How do you gauge performance? Well, which of your ideas make it into the book? Track them performance-wise in your own excel sheet. How big are they in the book? How about the ideas that don't make it in the book? How have they done? Make a sheet tracking all of this (should be easy via BBG APIs).

Then you can make an argument as to how much you contribute (or don't) to the overall PnL. How about helping out on ideas? Whether research or channel checks or whatever. That's part of it too but tougher to claim. If you are actively contributing it and tracking the performance of your ideas/work, then you can make a mathematical claim to PnL (now remember at a small shop the head guy(s) may be funding it and it may not be break even or barely so). In which case it is just like working at a startup. Things will get better if and when AUM rises. Otherwise, it will be a slog. For everyone.

How well do you get along with the CIO and other seniors? What have their career paths been? Are they happy to talk about it and tell you their stories? How friendly are you with them. Ask them out (post COVID) for coffee etc to get to know them as actual people. Or maybe even a zoom call post market hours... You'll find that all it takes is a little rapport and interest to potentially get a mentor and help. These people also probably know other people who can help you out.

The other thing is to network at conferences/investor days etc, with mid level and senior people to talk about ideas/companies etc. With that you can hear about job openings, comp possibilities etc and get networked into the scene. The best stuff is rarely done through headhunters.

Finally, do you have a roster of a few investment/trade ideas? If so, have them ready with a few ppt slides that you can show others if/when you interview.

You are in a HF and contributing in some way. That is leagues ahead of most who are trying to get in from IB/PE/whatever. You have already been vetted. Making your next move may not be easy but it doesn't have to be too hard.

And on feeling imposter syndrome, don't worry many feel it, I know I do. Plus most people in the industry do not outperform whatever benchmark or index. Not for long periods. It's why turnover is so high and fund life is short. Very few people really know anything. That's the beauty of markets. But that's also what makes them so hard.

This is all assuming that you want to stay within the industry... If you want to get out, then that is a different matter!

Good Luck

I used to do Asia-Pacific PE (kind of like FoF). Now I do something else but happy to try and answer questions on that stuff.

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