PMs out there: how did you know you were ready?
To the senior risk takers out there: when did you know you were ready?
For context, I am currently a senior analyst at a pod (Citadel/Mill/Baly) and have gotten offers to join smaller platforms as a junior PM. Career progression has stalled in my current seat through no fault of my own (team attrition, PM having to take personal leave) and I wonder whether it is worth leaving to take on more responsibility.
My thoughts are:
- There is a price for leaving a top tier HF. Once you go it may be difficult/impossible to come back. On the flip side the experience may justify it.
- I’m acutely aware that I probably only get 1 shot at this PM thing, so I want to be ready. Problem is, how do I know? I don’t feel like I’m taking on incremental risk/growth where I am, so how can I really tell?
- If leaving is not the best path - what alternatives do I have? MMs are different from banks, which will maybe try to find you another home internally if you are unhappy. Should I try to ask for a move or is that just suicide? My performance has been strong, but I wonder if that matters.
- What else should I be factoring into my decision?
How has your coverage done? You should be looking closely at the attribution and do your best to track outcomes where you would have traded differently than PM. You are ready once you are effectively doing the PM job for a few years without the official job or payout.
Junior PM meaning Sub PM or getting your own pod? Rarely makes sense to leave for the former, for the latter only if you have confidence in your process and have had opportunities to try it out in your current job.
I keep track of trades I’d have done (so I can keep myself honest), and pretty sure I can crank out 10-20 of pnl depending on vol regime. I am just not sure whether the mental flip (oh god my name is now on the line) will lead to a change in behavior.
I would wait until an opportunity opens up at a similar quality platform, it doesn’t sound like you’re in a place where downgrading makes sense for a sub PM opportunity
Do it. You won’t know until you try. There are too many new things to learn when it comes to being a PM and honestly if you sit on the sidelines you will never be ready. You will get your analyst seat back somewhere else if you get blown out as a PM.
Leaving for junior PM is fine. Just make sure your carve/sleeve makes sense under your PM's umbrella and that there's not some retarded style drift from the rest of the team or self-cannibalization amongst the team.
The fact that you're asking these questions and are not full of yourself is probably a good sign.
What does this even mean ?
That some people have too much conviction.
I would argue the firm name means little. Once you have a good PNL record you can get hired back to the large firms. PM is PM, and yes don't go bust in first 1-2 years. Once you have big years before you go bust, you will earn the right for a second chance to manage money.
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