Questions to Ask PM After Getting Offer

Based on the most helpful WSO content, here are some key diligence questions you could ask the PM after receiving a L/S offer:

Strategy and Investment Approach

1. What is the fund's investment philosophy and how has it evolved over time?
2. How do you approach idea generation and portfolio construction?
3. What is the typical holding period for investments, and how do you decide when to exit a position?
4. How do you balance risk and reward in the portfolio?

Risk Management

1. What are the primary risks you see in the current market environment, and how is the fund positioned to navigate them?
2. What is the fund's approach to managing drawdowns and volatility?
3. How do you monitor and manage portfolio-level risk metrics?

Role and Responsibilities

1. What are your expectations for someone in this role during the first 6-12 months?
2. How much autonomy will I have in generating and pitching ideas?
3. What does the typical day-to-day look like for someone in this position?

Upward Mobility and Career Development

1. What does the career progression look like within the fund?
2. Are there opportunities to take on more responsibility over time, such as managing a portion of the portfolio?
3. How do you support professional development for team members?

Compensation and Incentives

1. How is compensation structured, and how are bonuses determined?
2. Are there opportunities for equity or profit-sharing in the fund?
3. What metrics are used to evaluate performance for compensation purposes?

Culture and Team Dynamics

1. How would you describe the culture of the team?
2. How does the team collaborate on investment ideas and decisions?
3. What do you value most in team members, both professionally and personally?

Fund Performance and Outlook

1. How has the fund performed historically, and what do you attribute that performance to?
2. What are the fund's goals for the next 3-5 years, and how do you see this role contributing to those goals?

These questions not only help you assess the opportunity but also demonstrate your genuine interest and thoughtfulness about the role and the fund.

Sources: How to Diligence Firm Culture / Determine Fit (Post-MBA / After 2-Year Program), Q&A: Non-Target School to Portfolio Manager at a Top Hedge Fund – 6 Years Out of Undergrad, Good questions to better gauge culture and longterm fit of a startup PE fund?, Was it a mistake? A confused Private Equity junior., Thinking Like an Investor