MM/Prop/Single Manager
Hi,
I need help figuring out what I should do with my career and would appreciate any pointers.
Been involved in the HF space for >20 years, with almost all spent at a multi billion HF. Learnt a ton, created a lot of PnL(>1B) but got paid sh!t.
So I took the plunge a couple years ago into a Prop Shop and unfortunately found out that HF Strats(lower sharpe) aren't a great fit in Prop world and hence capital allocation is limited. So, I am looking to make a move.
What I currently have is a bunch of strats that I run in equities that are quant/systematic. They are very unique in their approach and I can count on my fingers the number of HFs running those strats.
Looking to deploy about 500MM in Gross Market Value and looking to return about 4% on GMV, excess of risk free rate, with a Sharpe of ~2ish. I have run these strats for a number of years and have good faith/confidence. I can run as much as 1B(GMV) in my strats but cant go higher. The issue with these strats is that they do they 2% (on GMV) drawdowns(1-2 times a year).
I am really wary of joining MM (never done that before) given the tight stop-losses, and don't know enough if my strategy numbers should make me wary of this. Ideally, I would like to work at a place that's not a MM, but looks like all jobs are in MM nowadays, and I dont even know where to start.
Can anybody shed any light, provide inputs or guide me in both my thought process and possible resources/leads?
Thanks
Hey there!
Navigating a career shift after such a long tenure can indeed be a bit of a jungle gym, but fear not! With your experience and proven track record, you've got some solid vines to swing from. Here's a bunch of bananas (ideas) to munch on:
Leverage Your Network: With over 20 years in the game, you've likely built a formidable network. Reach out to former colleagues, mentors, and industry contacts. They might have or know of opportunities that align with your strategies and desired capital allocation.
Consider Smaller Hedge Funds or Family Offices: These might be more open to unique strategies and could offer the flexibility you're looking for. They often have less stringent risk controls compared to MMs, which could suit your strategies better.
Look into Single Manager Platforms: These platforms can provide infrastructure and capital while allowing you to maintain control over your strategies. It's a way to run your own show without the administrative burdens of starting a hedge fund from scratch.
Explore Institutional Investor Route: With a strategy that can handle up to 1B in GMV, institutional investors might be interested. They often look for unique strategies with a solid track record to diversify their portfolios.
Educate Yourself on the MM Environment: If you're considering a move to a MM, it's worth diving deep into understanding their risk management practices. You might find that your concerns are mitigated by certain firms' approaches.
Consult a Recruiter Specializing in Hedge Funds: They can provide insights into the market and help match your skills and strategies with potential employers.
Prepare Your Pitch: Be ready to clearly articulate the value of your strategies, their uniqueness, and your track record. Tailor this pitch for different types of firms.
WSO Resources: Don't forget to utilize resources like the WSO job board, networking guides, and possibly the WSO mentorship program to connect with professionals who have made similar moves.
Remember, the finance jungle is always evolving, and with your experience, you're well-equipped to adapt and thrive. Keep your ear to the ground, your eyes on the prize, and those strategies sharp!
Good luck out there!
Sources: Finance Career Path & List, 30 and a bit lost in career - Advice Appreciated, Job Search Advice, Career in Finance - Reality or Reach?, How to get people to guide you along the way?
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