Pros & cons of jumping to PM from senior analyst / sector head role?
Hey all - how do you guys view the pros & cons of making the jump to a PM role from a senior analyst role? I'm more referring to being at a MM with P&L allocation (call it $200-$300mm in your names) as a senior analyst / sector head (with an agreement with the PM on payment terms) and making the move to a becoming a first time PM at another MM firm (either at a PM development program like Anthem (Balyasny) or Launchpoint (P72) or a smaller shop like Verition/Walleye/Exodus). A few years ago, I would've figured it to be a no brainer move, but I'm seeing a lot of "cons," and was curious on what I was overlooking or too/not enough focused on:
Cons of making the move:
- Likely lose at least a year of income as you build up all your models and process / platform again e.g. getting your data feeds, etc.
- Higher risk of blowing up, especially after spending a year building up your models. What do you even do after this? Go back and find another senior analyst role probably, but not sure if you'll get another shot at PM
- Building a team / training juniors
- Likely have to move city (which I see as a con as I like my current location)
- Probably running the same amount of capital ($200-$300mm) vs staying as as senior analyst
- Can likely stick around and continue to get get more capital / better with current PM if doing well
Pros of making the move:
- More control over process / being the guy who pulls the trigger
- Better economics, even if running the same amount of capital. Call it making 20% as a PM vs getting 10% as a senior analyst
- Potential to running more capital if you do well and make more money
Anything I'm missing? Almost feels like would rather be a better risk/reward of staying as a senior analyst until I'm really itching to leave.seems high.