My Only HF Offer - Should I Take It?
Ignore title, currently Senior Associate at a top EB (think EVR / PJT / CVP ). Ruled out PE for the usual reasons (IB 2.0, process monkey) and tried to move to HFs for over a year. I got an offer from a sub-1Bn SM with a fundamental / value strategy and wondering what I should do.
Pros:
- More intellectually stimulating than my current job
- Investment philosophy a good fit (long bias, longer holding periods, generalist) vs pods which are the main opportunities in the UK (I am London-based)
- Decent culture from what I've seen, at least for a HF
- Better WLB than banking, even though you go to sleep with your positions
- Base similar to current salary in IB
- Fund is small but has been around for 7+ years
Cons:
- Doing banking sucks but current job is easy, VP promo achievable and good recognition within the team
- Opportunity to clip pay for a few years (which might be higher than in the HF, at least for the next 3-4 years, unless a very good year / generous PM)
- More predictable earnings potential and visibility on bonus and IB (especially vs such SM fund where bonus is completely discretionary)
- Quite obvious but HF is a more unstable job with narrower exits (although I hope I could fallback in my IB years to get a corporate exit if things go wrong?)
I know its ultimately a decision of where I want to take my career, but honestly I don't see myself neither in IB or managing money long-term i.e. 10+ years from now, most likely perhaps having a chiller job where I can enjoy my family.
But before getting there, I want to have a good finance job that pays decently (not looking necessarily for a right tail pod scenario in a risk/reward equation) and its somewhat stimulating - was leaning towards the HF offer but wondering if its worth the trade off from my current place?
I’m junior to you, but from what I’ve gathered the most important factor here is whether or not you’ll be able to make money for the firm. From the people in HF I’ve talked to, the risk comes in whether or not you’re good at the job and have the instincts and applied analysis to enter and exit positions effectively. If you monitored certain potential trades in your recruiting time and believe your thesis played out according to plan, then it would be a good idea to make the jump. I am aware you won’t be controlling your own book at a SM, but it seems to me you already need to be good at the job before you hit the desk.
If you’re debating and asking on this forum, the answer is very clearly banking for you.
Doesn’t sound like you’re a risk-on kind of guy, and that’s okay.
Given the longer holding periods of the fund, you can do it for couple years and if you want to leave, move to a traditional LO AM. I've met quite a few people that were at your CapGroups and Fidos that did a few years in HF land and moved LO AM for whatever reason (lifestyle, long bias, etc).
Do you realize how hard it is to get a job at one of these top LOs lol. It’s not something you can just decide to switch to and then switch. The top shops are much harder to get into than your average HF. It is definitely possible, but not just an easy switch you can decide to do if feel like it.
Yep, I'm aware. I recruited at all the big LOs, and I'm headed to one for the summer. Recruiting sucked, but I'm just saying the HF->LO is a somewhat realistic possibility. Also to support your point, the people I am talking about who made the pivot were all coming from name brand HFs, not smaller less known funds.
Sub 1b is not specific enough - huge world of difference between a 750mm fund managing real external capital vs a 200mm fund pretty much just operating as a family office for a founder / founder's family and friends with a subpar fee structure.
I'm not gonna read that, I say go for it
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