The Greatest Dilemma
Monkeys, let's talk about it, the greatest dilemma in the capital management space. Let's create a hypothetical scenario here, assume for a moment that you have two offers. One from a big LO firm (Causeway, Sands, Polen) and the other from a big L/S firm (Point72, Citadel, Millennium) which one would you pick.
I think most people here, for their personal wealth at least, believe in the LO modus operandi, or 'value' based approach. But as an employee, at most LOs you make what? like a $100k base and then 30%-40% of that as bonus? in your first year. On the flipside, these L/S firms pay you a lot more, twice what LO pays in some cases.
But what is the end game here? While I share philosophy with LOs my material greed for money pushes me toward L/S. What are the exit opps?
We know a lot of people who start at HFs and then go on to set up their own HFs and buy mansions in Palm Beach. Rarely have I heard someone from LO going on to make such wealth, or maybe are they secretive?
Once one breaks into L/S, there is a lot of possibilities to end up with a 7 figure and in cases 8 figure net worth in 10 years assuming you played all your cards right and were wise with what you earned. In LO? do you have to spend 10 years to make half of what your L/S counterparts make?
Given that as an 'Investor' purely from a philosophical perspective LO guys could be superior, but at what cost? I would rather be rich and mediocre than poor and exceptional.
What do you guys think? how do you approach this problem and what would you choose? Calling all the wise old lurkers in the forum who have been around the space for a while.
PMs at top LOs make 7-8 figures. Senior analysts make mid six figures and up.
Good L/S PMs can get there earlier but with significantly more risk esp at a MM
going to citadel/p72 out of undergrad and wouldn't pick an LO over it. Just out of interest tbh
how am i getting MS for my own life choices lmao
Your dilemma should be on whether to tell your college friends that you still wet the bed at night, and also how to fix this childish behavior that you haven't kicked the habit of
100% from a high schooler
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