MM Turnover Stats
Business Insider had an article recently on ExodusPoint
They claimed that there were 108 PMs to start the year and they ended at 81 PMs.
They also claim 60+ were fired and 36 were hired in the same year. Suggests something like 50% of PMs at the start of 2022 likely left the firm that year.
These numbers seem incredibly high to me. How is this possible? How do other firms compare.
ExodusPoint is an outlier, we can't extrapolate those numbers to the other platforms.
They are closing more and more their L/S business.
Even though the turnover is very high in general in this industry, we can observe the opposite momentum at places like Citadel, Millennium... that are hiring a LOT.
What went wrong? Is there any reason to join them over the big 4?
They raised capital too quickly, had to overhire and brought on some terrible PMs, didn't invest in technology, Gelband hired all of his sons and seemed more preoccupied with giving the middle finger to Izzy than trading... People don't really realize that these platforms are a business. You can pay an extra 1% and promise the world but if you are a bad business manager, you will have a poor business, simple as that
What do his kids do and why would investors allow that? Are they PMs?
Market way too crowded. Even infrastructure investors going into the MM market. I suspect a large tail of smaller players could end up shutting down.
I can’t think of a reason to join exoduspoint over Big 4.
And yes, Exodus Point is an outlier in turnover in the past year.
What does a PM who lasted under a year managing money do for the rest of their career?
Downgrade shop and have a second chance at PM
Go back to being an analyst at equivalent tier fund
Exit industry and become [insert exit ops]
make excuses, try again
LOL. Funny yet true.
Beneath these track records there are a lot of never-shoulda-been PMs w little books, trying and churning & then a handful of big teams with established PMs who churn not much more than a comparable single-manager. There are very few places SM or MM where you can be bad for 2 yrs straight without having your name on the door
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