Should SM HF still be the goal out of UG?
I'm going into my junior internship at Evercore but I've got a couple SM HF offers for FT. I was always dead set on going into HF out of undergrad because that's where I want to be long term, but the recent collapse (both firms are likely down ~40%) is making me reconsider.
I know it's very rare to even get SM HF offers out of undergrad in general, but the two firms aren't doing too hot and I'm not sure if it'd be worth joining a potentially sinking ship instead of taking the safe route of IB. Obviously IB also could have layoffs, but the risk there is far less than at an HF. HF also has way larger upside though.
how do you already have a couple offers for FT? By their performance numbers, I’m assuming these are Tiger cubs? only fucking tiger cubs would be down this much Lmaooo
Can you give us some names, doesn't have to be the exact fund but roughly what sort of firms/strategies/AUM? Also just curious if you had previously interned there?
under no circumstances should you join a sinking ship hedge fund over evercore. this is a performance based business and any fund down 40% is on its last gasps
This is actually a very tough decision but don't think you can go wrong with either. I joined a SM instead of banking over 5 yrs ago and the fund was down that year when I joined (not 40%) but redemptions were coming in. We survived and I don't believe in luck so it was the right decision.
Evercore is a safe bet and you can always re-recruit for HF but it depends more on your own preference. I think if you're willing to put yourself in the fire immediately and take that risk, going the HF route has a substantially higher reward/pay-off. Evercore is the easier/safer bet but you're also likely crushing yourself for 1-2 years before having a shot at any HF, and you don't know the job opportunity set down the line. If you go to a highly-regarded HF (albeit down 40% assuming their reputation isn't impaired) then you can build a personal rep earlier and stay within HF assuming it survives > 6 months.
Evercore is not by any means a bad backup fwiw
Assuming the shop you're pondering is L/S, given their horrid performances.
Market carnage ain't done yet, look out for deleveraging cascading volatilty event in 2023, which can sink more shops. After that, equities could flat for as long as inflation is lingering like the 80s. This is financial advice.
Better wait out for the storm to pass. More redemptions are coming. Equity HF is not the place to be atm. Stick with Evercore. This is career advice.
Know what's the worst? Getting washed out of an underperforming HF with little experience (12m) under your belt and can't break back in BB/EB IB. And recession hits and job market tanks. All you need to do is find a safe place for cover without destroying your resume and tactically reassessing career options in 2023/2024.
No need to rush into a house that is on fire. Evercore will get you to where you want to go in two years.
How'd you recruit at these places? I had no idea SM's were already recruiting for FT 2024
What SMs are you referring to? Some names would be helpful
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