PM from LO to MM HF without L/S track record
Hi folks
I think the title says it all.
I am a LO PM and had my first interview with a HH for a MM HF position yesterday. Turns out she only wanted people with L/S experience and track record. As I am a LO PM, that is by definition not possible. I explained her that my approach (rel value through proprietary factor investing) has a long and a short leg, but that I can only use the long leg at the moment. I always track L/S performance of my approach but have no track record. Also, she did not know the difference between SR and IR...
I am wondering if I can become a MM HF/pod PM if I currently only manage LO portfolios? The HH said no and the interview was over after a few minutes. Any experience or thoughts?
thanks
Based on the most helpful WSO content, here are some insights regarding transitioning from a Long-Only (LO) Portfolio Manager (PM) to a Multi-Manager Hedge Fund (MM HF) PM without a Long/Short (L/S) track record:
L/S Experience Requirement:
Challenges Without L/S Track Record:
Alternative Approaches:
Market Perception:
Interview Preparation:
In summary, while the transition from LO PM to MM HF PM without a direct L/S track record is challenging, it is not impossible. Emphasizing your relevant skills, seeking internal opportunities to build L/S experience, and networking within the industry can improve your chances.
Sources: PM / Sr Analyst at MM HF to LO PM -- doable?, PM / Sr Analyst at MM HF to LO PM -- doable?, LO to MM HF?, Leaving MFPE for MMHF seat?, Is the Multi Manager HF Experience Worth It?
There could be a slim chance at one of the smaller emerging MMs. But at the established ones MLP Citadel P72 etc, zero chance.
Sorry to bear the bad news, but I bet they have seen scores of people in the past claim they could adjust to the market neutral model, and then fail. It's lower-risk for them to promote a Sr analyst that is experienced with market/factor-neutral than to take on a LO PM.
Best route is to join as a senior analyst at an MM and make your way up to PM
Thanks both. Definitely not the answers I was hoping for. As a quant PM I look always at the short legs of my strategies, but I agree why should someone take me without the short leg track record- appreciate your direct answers.
Answer changes if you're quant
Could you please elaborate a bit..? I know I won't be able to work as a senior research analyst doing fundamental analysis...so rhis would not work to start at a MM HF, but even as a quant PM I don't have the L/S track record..?
i believe MMs are more willing to give small sleeves or some other form of real action to LO quants as long as you can pitch them that your overwweight/underwieght model could also be applied to l/s - vs LO fundies are very unlikely to start at anything but the bottom with a similar pitch
No it doesn't
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