Q&A: Tiger cub hedge fund analyst, previously worked in PE

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How would you compare the differences between the recruitment process for the PE analyst role vs. the HF analyst?

This is covered quite a bit but would also appreciate your opinion on the emerging pros vs. cons of your time in PE and your current role at the tiger cub. Specifically, would be interested on work content, hours, culture and career trajectory. But, most important, happiness. 

For someone who loves following the markets and enjoys short-term trading (1-6 months) over long term investing, do you think I would be a good fit for multi manager hedge funds? My main concern is everyone saying how there is no job security and I could be jobless after a couple years with no where to go, is this true? If it is then what's an alternative career focused on trading that is more stable? 

Sidenote : I do not care about pay as much as I do about playing the game that is the market.

• Do you think PE/IB is necessary to being a strong HF analyst? I know many do it but do you think you would've been fine entering out of undergrad?
• Why switch from a Route 1 type shop for a Tiger Cub?
• Possibly related to the above, how do you perceive your opportunity for upward progression/making PM at these two funds? Would you prefer to start your own fund or make partner at an established fund?

Thanks for doing this!

How's your personal investment process evolved from your time at the SM L/S fund to your current role at the Tiger Cub? What are the biggest differences between the 2 funds in terms of mandate and process?

What do you think you need to do to keep improving as an investor? What changes to your process or thinking have had the biggest results from a learning / compounding perspective?

Go to a target and going into PE after graduation, so your background resonated a lot- thanks for taking the time to do this. Is there any tradeoffs between recruiting to a HF as an analyst versus as an associate? Interested in L/S equities in the long run but thinking about doing the 2+2 A2A path first to build up some experience before making the jump, so was wondering if staying on as an associate before recruiting to HF would limit opportunities as I'd be perceived as lacking genuine interest etc.

Can you talk about some of the more interesting analytical edge you’ve seen being exploited within the different funds you’ve worked at? Always curious about different ways of establishing questions and finding answers. Thank you.

What is the major difference you find between a typical HF and a Tiger Cub HF in terms of your work process vs your peers?

I was just wondering what background you colleagues have. Are they mostly former MF PE? Are there guys who came straight from IB? Any long-only AM guys? Thanks

Did you enjoy PE (or was it like IB where most people don’t enjoy it, just try to get through it)

What is recruiting like for tiger funds? Are there headhunters or do you reach out to current analysts/pms? Do they have on cycle recruiting or is it completely random?

1. How would you characterize risk management at your Tiger Cub (e.g. types of metrics/factors one looks at and degree of adherence to those metrics)? How would you compare risk management there vs your perception of it at MM equity pods?

2. Turnover of investing staff (for junior/mid-level/senior employees). How frequently do people leave voluntarily? How frequently people are fired? What are the most common reasons for exits?

1) What's your comp in a bad year? Good year? Exceptional year? 

2) What is the culture like? Is there a lot of yelling from superiors? Is there high turnover? How is job security? 

How much do you make?

Thanks so much for doing this.

What was did your prep look like for recruiting at tiger cubs? Was it investing knowledge built over time or was working in PE particularly helpful for that?

For people who start in RX banking, are the odds stacked against them to get into a tiger cub? Is it primarily those from top MFs (BX/SLP) who have the best shot?

Thanks for doing this!

Couple questions-

- What specific skills do you feel you developed in PE as an ANL that helped at your current / prior HF?

- General overview of the recruiting process at your tiger cub would be helpful

- What % of your current team is made up of former bankers vs. former PE professionals?

Thanks!

How’d it feel to lose half your fund value because of some keyboard warriors on reddit?

How much do you, or your seniors, talk with analysts from other funds? Is it normal to share and discuss ideas with others?

Do you have any view or know anything about the HF space in Europe? Most MMs are well represented in Europe and the space is similar to NY, but there's less information on WSO about great SM's or "Tiger Cub" equivalents

What was your recruiting process like? How did you balance recruiting while still working on your current job? How many ideas did you pitch? Did you have a personal portfolio while working in PE or were there trading restrictions in place?

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What do you think of a MM vs SM in terms of career trajectory, work hours, compensation, and exit opps?

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How do you source ideas in your current role? How do you think your background from PE has impacted your ability to generate ideas? 

book suggestions?

Thanks for doing this. Also a 2017 grad. I'm at a large PE shop, and I hate the amount of BS modeling. The level of granularity is not helpful, and most of the modeling is performative. I find that our models take weeks but often, we never actually learn anything useful, and think that most of the more interesting insights come from biz ops type metrics (e.g., learning about company operations - not building complex financial models).

I'm thinking about moving to HF for a number of reasons, but wanted to ask about this point in particular - are you a modeling junkie? How much of your day to day job is a modeling? When does model building come in - when you are about to execute a position? When you first have an idea? It is a make or break for me whether HF roles have this much garbage modeling.

Thank you very much.

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Think OP is getting blown up by Reddit short sellers and had to take a leave of absence

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what do you see as your 5-10 career horizon/plan? Do you see yourself continuing to stay in the investing world or would like to take the operating seat at some point?

Hey man, I have a good question. When the fuck are you gonna answer everything above?

Agree that it would've been good to get a timeframe for replies.

But would also suggest people here to check their entitlement. The level of impatience after only a couple days since original post during a work week is rather childish.

Legend has it he still hasn't showed up for the AMA

does having close ties or working at a tiger cub/grandcub mean anything in terms of you developing a well-rounded and competent investor mindset or is it more of a brand/prestige factor?

Keeping in mind that you won’t want to delve too much into this for anonymity , could you talk about your PE role analyst role at a high level ? (Ie was it a sourcing role, etc)

Do you think a growth equity PE analyst seat is sufficient background to pursue l/s equity hedge funds later in my career. I feel like the sourcing skillset I'd build would not be super relevant to a HF.

best AMA of all times 

AMABIWR

Following here. Let's not forget OP is doing everyone a favour, so let's just let him live