T2 Hedge fund or T1 LO/AM?
Hi,
I just received two offers and I would like to get the forum view on pros/cons.
I have 1/2 years of work experience at a hedge fund and looking to move for some reasons.
What would you choose between going to Capital/Wellington/TRowe as a research associate or going to a Tier 2 HF (LSD AuM with no particularly strong profiles)?
The pay and promotion potential looks way better at HF but the stability looks way better at LO.
I was about to accept the LO offer but the HH than brought me the HF offer made me doubt...
You could potentially jump from the LO to a t1 fund later on if you don’t enjoy the LO work.
not trying to challenge, just understand. with the limited number of people making the switch (partially because t1 LO AM classes all together are a couple dozen ppl per year), what gives you conviction that certain HF exits are replicable?
I would think most pods would still be accessible, and if you look through LinkedIn there are folks that have jumped from T1 LO to T1 L/S.
For the love of god please choose the LO. A career done right at one of the t1 LOs would net you many, many, many multiples of what you’d make at the HF. If it’s not a top pod or $10bn+ SM, LO is the right choice from basically every perspective I can think of
LO upside is dependent on you becoming a partner and it’s back weighted - 30 year career and making high 7 figures / low 8 figures for 10 of those - what’s that worth?
The small HF upside won’t come to fruition. Don’t bother. The upside at a top pod / $10bn SM is greater than LO, but it’s shorter in duration and comes with a lot more added risk (but for top pod/SM more comp on the upside + optionality of raising your own fund and spinning out one day or getting a huge guarantee / running multi $bn book with big payout at another pod).
The t1 LO career seat is very hard to beat. I’d go as far as saying it’s probably the best way to build generational wealth on the buyside (across anything in public vs private markets, across any asset class), assuming you can get on partner track which is not an easy feat.
This right here is the best answer in the thread.
OP, take the LO role and don't look back.
I never understand these questions, do you or do you not want to be an LO investor? If yes then the choice is obvious, if you want to stay on HF side of things obviously choose the HF (unless the T2 fund is so abhorrent LO gives you incrementally better looks on the HF side, which we cannot discern from this psot).
Depends on the specific LO tbh - e.g. CAP doesn't promote RAs and exits are quite mediocre (there are some other threads on this). From what I see Wellington has the best internal upwards mobility and Fidelity/D&C have the best HF exits but would probably go with the HF if it's a 3 year and out at CAP/TROW.
Any insight on clearbridge and neuberger berman? Thanks!
Any thoughts on the CAP Associate program as opposed to the RA program?
You'd have a pretty good shot at becoming an analyst from that one I think
Probably wouldn’t be starting from scratch if not coming out of undergrad immediately?
Yes but definitely won't be a post-MBA role with 1-2 YOE
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