MM PM vs SM senior analyst
most of the conversations here have been joining MM vs SM at the jr analyst level. But curious which you consider a more attractive path: stay/get promoted at traditional multi billion dollar SM vs move to a MM as a junior PM. I assume that there is a risk/reward component, as well as a “what do you value” component (between stability vs autonomy and track). But all else equal how do seasoned HF professionals think of one track of the other? This is excluding seats like Tiger etc which I assume are more attractive than any MM PM
asking bc I notice Partners/MDs at single managers join places like citadel as analysts, but also MM PMs join single managers as senior analysts. Not sure how much is forced/not but curious how you view it
good question - bump
>excluding seats like Tiger etc which I assume are more attractive than any MM PM
u sure about that?
Could u elaborate
Tiger guaranteeing 7 figs to 25 year olds apparently
Bump
There is going to be a ton of variability within SM funds and MM pods. Senior analyst at a SM could mean anything from someone making a few hundred k to a partner making 8 figures. Similarly PM at a MM could be someone with new book, no analysts, and a small guarantee to someone who has consistently made 8 figures (maybe even more) for years.
In terms of the moves I have heard of from SM to MM transition:
A senior analyst at a SM that either blows up or underpays them in a year where their ideas outperformed gets a PM seat, a small guarantee and starter book at a MM. Based on my very small sample size - this typically doesn’t work out well as managing risk in this structure is not something done at many many single managers and they blow up quickly. I get the sense that people who have more experience in a structure that requires them to manage their risk (e.g. banks, trading firms, analyst at other MMs, but also certain SMs) are both more likely to get hired and succeed in this type of transition.
Senior analysts getting fired or whose fund blew up that find a seat under and established PM at a MM who has been consistently profitable and has a sizable team. I think others on the forum have done this transition so they can comment more. I get the sense that’s it’s mostly the PM needs a specific skillset/sector knowledge and the analyst wants a stable seat with the opportunity to learn and grow into a sub-pm/pm.
One way to think about it is MM pods are like individual funds. Would you want to start your own fund with a small amount of capital or to join a big fund that has been successful for many years. If you cannot manage risk in a MM structure, it is unlikely the former is going to be the best path. As for how either of those paths compares to staying at a SM - really depends on the SM fund: performance, track record, aum, generosity of founders/pm.
The question is more analyst vs. PM, they are different skillsets. Analyst is more being in the weeds on security analysis, PM more about macro view on taking / managing risk. Taking risk is ultimately the hard part in life and the valued skill, which should be rewarded commensurately. This is why SM analyst > PM transitions can be tough, because it's a hard skill to teach and learn esp if you're not trading / hedging frequently / don't have high idea velocity etc. / "long-term" / levered beta. SM analyst GENERALLY more clipping coupons and PM more call option, more carry-oriented returns. Some guys fine with / better at being an analyst.
USUALLY the guys going the other way from PM to analyst either blew up and couldn't get another PM seat and had to step down, maybe decided risk taking wasn't for them, wanted a more stable income for their lifestyle etc. Think if you're good at taking risk rarely you would want to go back and take a cut.
And no, you can make more as a MM PM than as an analyst at a Tiger, a LOT more if things work out (ex very senior founder type partners which is more of a reflection of entrepreneurial risk than hf skill).
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