Small SM vs. MM Opportunity

Investment Analyst in HF - Other

Is the SM just starting out now or has it been around for a bit? Would try to diligence AUM history if it's been around. If you haven't yet, you should ask about returns and what the founder thinks about scaling (timing and target size)

Are the sector / industry coverage options the same at the SM and MM? If not, do you have a preference for one or the other / is one more niche?

Do you have a preference between more short-term / market-netural investing (MM) or slightly longer duration / looser risk limit investing (SM)? 

These questions would be important to think about and understand your view on. Would let others who are more experienced chime in, but my first take is that the SM is a bit of a riskier option near-term, but potentially higher outcome medium term if the fund performs well given carry in the fund. I also think that it would be easier to get another similar MM role after the SM if it doesn't (since it sounds like a relatively new MM pod / not one of the top established pods anyways). Downside is that if you like the MM model and can perform well in it, the sooner you get in that seat the sooner you'll likely have a P&L-tied risk-taking seat 

Thanks for the reply. All helpful things for me to consider. To answer your questions below:

• SM is just starting so no real track record to diligence (have not asked about scaling / timing but agree that’s key)
• Sectors are the same but types of companies differ. Global Small cap vs large cap focus
• Strategy question is a good one as I think both the short-term market neutral and longer term view are interesting. Obviously I only really have longer term experience due to my time in PE but that's also one of the parts I don't like about the job

My thought process is that pods are always hiring so this “same” job would be available later if the SM didn't work out. I just wasn't sure if the difference in investing types would prevent me from making the switch later if needed. 

Doesn’t sound like gumshoe

Not Gumshoe but I had read the Gumshoe thread before I posted this and can see why you think that lol. I would say this opp’s investment mandate seems similar and would prob be a good comp. 

Thanks for your reply and I largely agree with you. I guess my thinking was that going with the SM would give me two shots on goal (I.e SM doesn't work out I could go to a pod vs. pod doesn't work out to this SM opportunity) 

The strategy of the SM is more unique than typical L/S both in types of companies and geography. So wasn't sure if the pod opportunity would be closed to me if the SM didn't work out.