PE vs. LO Hedge Funds: Should I Trust My Dates’ Dream Job Pitch?
- 4 years of PE background
I’ve always imagined myself exiting into growth equity or sustainable investing—something with better culture and less intensity. However, I recently went on a couple of dates with different guys in LO and L/S equity hedge funds, and their work-life balance sounds too good to be true.
They described their jobs as flexible: attending conferences, meeting CEOs, taking research calls, chatting with bankers, and covering ~20 companies—all while setting their own schedules. It sounds dreamy compared to the grind of PE, but I can’t help wondering if they were exaggerating given it was a date.
I love investing but feel burnt out. PE’s intensity makes it hard to imagine balancing this specially if I want to have kids soon. My strengths are relationship-building, investment acument (god knows what my MD means by this but I'll take it) and creating white papers. Anyone who made this switch and do they like it?
Based on the most helpful WSO content, here's what you need to know:
Comparing PE and LO Hedge Funds:
Work-Life Balance:
Job Activities:
Career Considerations:
Growth Equity or Sustainable Investing:
Alternative Career Paths:
Personal Reflection:
Actionable Steps:
Remember, it's essential to verify the claims made by your dates through additional research and networking. The dream job pitch might be true for some, but experiences can vary widely across firms and roles.
Sources: I have no idea what I want in life anymore. Any tips on soul searching?, Any PE people considered leaving to pursue search fund/entrepreneurship paths?, Handling Stress / Burnout in Private Equity, As my username suggests, not sure what to do..., Lesser known MBA career options? Looking for advice on what to do post-HBS.
First thing's first: all of the potential jobs you're talking about are competitive, high intensity ones. They might not all manifest that in the same way, though. But don't mistake fewer in-office hours for a better balance. I've worked in HF for 20 years, run international operations, and launched and manage my own fund. I am ALWAYS working, and so is everyone I know who has achieved any measure of success in any field, the ones you mention or otherwise. It just doesn't feel like work because I enjoy (most of) it ... and many times I can work efficiently enough to do almost everything I want with my kids / family / friends, exercise, sleep etc etc.
All that to say: I would strongly recommend against choosing a career path based on apparent 'work-life balance'. Instead, find the job that will feel least like a chore over time. It will be much easier to coexist with that no doubt demanding career, and you will achieve far greater success and fulfilment. (and remember not everyone comes to these matters the same way - so don't let other people's experiences sway you overly much)
Thank you. Appreciate how thoughtful this is!!
I’m currently at a LO and I can attest the WLB is extremely good. Most if not all the Analysts/PMs come in around 730-830am and are out at 4-5pm on most days. Even during earnings most are out of the office, but they log back on later in the night maybe for a couple hours at most.
long short (at least mmhf) is a grind. pe is cushy af. no mark to market, pass the hot potato to another firm to make $$ and job stability.
In PE You're operating on 95% all the time trying to push deals over the finish line. HF PMs are operating at 15% 90% of the time and 100% 10% of the time. We're sprinting not running a marathon.
As a PM you can have long stretches of time where absolutely nothing is happening in the markets, vol is low, and every security seems fairly priced. Because there's no facetime requirements, during those times you can basically coast and do very little. But there are periods where it feels like you're drinking out of a fire hose. Even during an 8 market hour day, you feel incredibly stressed out because there's too much info for any normal person to process, hundreds of decisions must be made with little or no notice, and mistakes are measured in the 7 figure range. And remember, you own every single mistake: there's no one above or next to you to take the responsibility. Some people can deal with this. Most can't.
Maybe product strategy within a LO might be a good fit for you?
The skillsets are similar in that:
1) relationship building with institutions/endowments to sell investment products/solutions
2) you will occasionally write a white paper/market perspectives to send to clients (for example, “why private credit is a good diversification for one’s portfolio” or “we think decarbonization is the next big thing & we have ETFs to capture that secular trend”)
3) requires a decent amount of general investment acumen but analysis is less granular (ie focus on sector/index/asset level). so mostly just reading research, compiling charts & parroting in-house views.
Thank you!
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