Starting off at a Multi-Manager
Seems like going to a multi-manager out of undergrad sounds like a tough decision
-high-pressure/turnover
-limited exit opportunities (jumping around groups)
-worse training/higher expectations than IB/PE
What's the benefit of going to a multi-manager instead of doing the classic IB --> MFPE --> and then have all the doors open (SM, MFPE, etc...)
You get to be an investor quicker, and in an investment style that is pretty effective.
I mean if u are interested in public investing there is no point in jumping through all those hoops
Heard it's very hard to leave a multi-manager to a single-manager since strategies are very different though?
Heard from what, intern? WSO? It’s a fucking echo chamber lmao and very few if any people have informed opinions on this.
Heard from WSO and a coffee chat I did with someone working at a SM
Oh my god everyone, he did 1 coffee chat with someone who said it!
As someone that went from MM to good SM and looking to go back to MM, and has many friends who’ve done the same, you’re very wrong. How many times to people on this site have to say it. Can’t stand college kids, part of me hopes you guys just go to these busted SMs and learn the hard way and fizzle out of the industry
The top pods out of college are probably the best roles you can get if you want to do public mkts (NOT mega fund PE…). How many times does it have to be said? Not a single HF analyst thinks the way you idiot interns think
My bad, not sure how I can build a more holistic view since I'm still in college and haven't worked in buyside yet. Thanks for the input though, I'll try speaking with more professionals to better understand the industry.
who shit in your salad bro
I mean if u check linkedin this is absolutely not the case
No you’re wrong. Get out of this stupid intern Wharton bubble. This isn’t 2015. Everyone knows the best analysts are the ones from the pods; no fund other than maybe Ackman has the “oh we can’t hire pod analysts” policy. I went from MM to SM and am planning on going back to MM.
I don’t think a single real HF analyst would tell you otherwise. If you want to be trained and be the best analyst you can, go to the pods. If your goal is HFs as a career, there’s no better place to start than one of the big pods…no, mega fund PE is not a better place to become an analyst. What kind of moron would think some BX analyst that spread comps for 3 years is a better analyst than the Citadel or Millennium guy who’s covered 40 tech names for 3 years and knows everything about them?
And on job stability…yeah no. Again, since you need to be spoon fed, I’ll state the obvious… if you’re a good analyst, even if your PM blows up (which doesn’t happen nearly as much as people say), they keep you. You only leave if another pod offers you more money or better seat…
Sure it’s stressful. If it’s too much stress for you go do wealth management or something.
Who on earth wants to work for Ackman these days so that he can have more time on X?
This is literally the most written about topic in 2023.
SM and MM are moving towards a model that has similar characteristics I think the forum has written about that ad nauseam for last 2 months on here with two massive threads on the topic. So it is not to say SM or pods have "better analysts" it is more they are both starting to do the same job and see risk management in a similar path. As mentioned Ackman is an "activist" and for sure one where being a PE associate would help.
.
The only trade off is optionality tbh
Legit question from OP. Look at the top funds like tiger, lone pine, coatue, Darsana, TCI, farallon list goes on and on. Almost all analysts were at IBD/PE and very few MM PM/Analysts get jobs there. Is this a preference or something else?
Cue the underperformance comment in 2022
The funds you listed hire from a very select list of ~10 PE shops and ~5 BB/EBs (ex-Farallon, that's a bit different I think as most of their AUM isn't in L/S). If you are weighing an analyst programme from one of these PE/BB/EB shops, most would probably agree it's a better risk/reward than an MM grad programme. But if your alternative is a mid-BB/not-so-great group at a top BB and you know you want to exit to L/S, the MM programme makes sense. Add on to that the fact that (i) there are many SMs that are maybe not at the level you listed but still very respectable who do hire pod analysts, screen for e.g. ex-Surveyor folks on LinkedIn to filter out the BO/MO/quants that you get if you screen for the Big 4 MMs (ii) an elite SM may be better risk/reward early on but if you are going to end up moving to an MM for a risk-taking seat later on (as many SM analysts will eventually have to to progress) maybe it's better to have started out within and been trained under that framework all along?
This forum really has an anti-tiger cub boner now ngl.
Inb4 elliot hires out of Point72 Winternship
Personally wouldn’t do it. Not because I think the pods are bad training (they’re not), but because I don’t think most 22 year olds are capable of accurately weighing the risks/rewards of of a lifetime HF career. If you do at least 2 years in IB first (then maybe 2 years in PE, up to you), you’re 24-26 before making that decision and have several years of real work experience, understanding what you actually like and don’t like (as opposed to fantasizing about it) before committing to that decision.
Pretty simple - if you’re in the top 10% you make more than in any other IB/PE/HF track, and plenty of people believe they’re in the top 10%.
The problem is when your outcome is not fully in your control - but then again neither is the recruiting lottery for MFPE -> H/S or SM etc. Comes down to what kind of risk you prefer to take.
Sure, reward is great if you're a top performer. But even then, I can't seem to find many people staying 5+ years at one of these MM funds
Furthermore the top BB/EB pipeline to MF/UMMPE pipeline seems much more consistent. So, why would someone want to choose a Multi-Manager offer over an EB/BB? Doesn't seem to make sense from a risk-reward perspective – assuming the EB/BB is top, couldn't they just exit to a Multi-Manager/UMMPE/MFPE seat? If not, they're probably not cut out for finance and wouldn't perform well at a multi-manager anyways?
Qui vel assumenda maxime aut adipisci ullam. Et rerum ipsa dolorum est velit. Qui mollitia sint voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Voluptatem quia odio doloremque dolorem temporibus ipsum consectetur. Alias explicabo minima animi. Sit dolorem recusandae reprehenderit iste doloremque nihil totam. Explicabo dolores officia veniam incidunt et. Ut debitis aperiam ut nemo totam.