Top LO to Top SM HF Pivot Possible?
Is it possible to pivot from a top LO to a top SM HF? Curious how often it happens, particularly post-MBA.
Trending Content - Hedge Fund Forum
| +45 | Do Quantamental roles really exist? | 20 | 1d |
| +18 | Worth Joining a Small Hedge Fund? | 13 | 1d |
| +17 | L/S Equity Career London | 11 | 15h |
| +11 | Hedge Fund (Fundamental Long Short Equity) Compensation in Singapore Hong Kong | 3 | 1d |
| +9 | Nvm | 6 | 18h |
| +8 | Yes, this question again… | 3 | 2d |
| +5 | X | 6 | 5d |
Career Resources
Based on the most helpful WSO content, transitioning from a top Long-Only (LO) to a top Single Manager Hedge Fund (SM HF) is possible, but it depends on several factors. These include your investment track record, the relevance of your skill set to the hedge fund's strategy, and your ability to demonstrate a strong understanding of risk-taking and alpha generation.
Post-MBA transitions are less common unless you have prior experience in a relevant role (e.g., equity research, investment banking, or another buy-side position). Hedge funds typically prioritize candidates with a proven ability to generate ideas and manage risk, which might be harder to showcase if you're coming directly from an LO role without prior HF experience.
If you're already in a top LO and have a strong performance record, networking and leveraging headhunters can be effective ways to explore opportunities at top SM HFs.
Sources: How many Job Switches is too many for an MBA?, Join startup HF or pursue MBA? Seeking advice.., Q&A: HF Analyst @ $5bn+ Fund - Breaking In and Transition to Risk-Taking Role, LO to MM HF?, Q&A: Former Long/Short Research Analyst at Top HF -> VP of Growth Equities at BB
Bump!
Curious if this doesn’t happen because of self selection or because the doors aren’t open? Think top LO Capital, Wellington, Fidelity, TROW, D&C) to L/S SM exits
I work at a T1 LO and I think I will be called back almost 100% if I sent my CV to a SM HF.
The rest (being able to get an offer) is obviously dependent on individual.
Also, keep in mind that SM in aggregates might be hiring less than hundred people every year. This is making it difficult to make general rules.
Super helpful, thanks!
Curious how meaningfully different the comp is at mid-levels between a T1 LO and a SM? My impression is that a 5YOE analyst at LO might be consistently making $750-$1MM all in (30-40% of which is non-cash), whereas a 5YOE analyst at SM would be making $1.5MM+ depending on the seat and the year with much more YoY vol. Does that sound right to you?
I interned at one of the shops people usually consider a top LO (Wellington, D&C, CapGroup, Fidelity) last summer and will be returning FT this year. I met lots of people (analysts and PMs) who came from top SMs but didn't hear of anyone leaving to these firms (I'm sure it still happens but it seems rare).
I heard of analysts who said they received offers from SMs for over 2x their current pay at the LO but decided not to leave just because the lifestyle, job security, and long term comp expectations are all extremely good. Maybe these are just rumors but speaking to people in the firm it does seem true.
So I think you can exit to top SMs from top LOs, but most people at top LOs prefer their current seats as better than any/most SMs.
I think there’s some self selection there where the type of person that wants to work at an SM HF is a lot more comfortable putting in the hours and accepting a bit more risk to bet on themselves for potentially obscene amounts of money. Some people find that to be a bad trade and prioritize different things.
How does LO recruiting work? I am currently at a MFPE firm and am interesting in exploring LO
Super helpful, and makes a lot of sense. I've heard many people say that it's more one way because it's hard to beat the risk/time adjusted comp of a LO.
Out of curiosity, what is the buy side view on TROW? New to the space and trying to figure out who is who and what exits look like from different platforms.
I know that they are public so they might have quite the same partnership economics at PM level as Cap, Wellington, Fidelity, D&C. But my impression is that they are still well regarded? Do you think exit opps change from a platform like this?
I used to work there, and I’m interning at a different LO this summer. I’ll say for equities the reputation is still top notch. They’ve had some issues with their top funds, and it looks like they are being slightly more selective on hiring recently. Also as you said, they are slightly less prestigious than Cap Group and Wellington due to the private economics at those firms. But having just gone through recruiting, I know most candidates would consider them top 3/5 for equities overall.
This is a stupid question and a different form of it gets asked every day. Can I go from Pod / SM / LO to SM / LO / Pod (or some variation)?
With a certain pedigree in each of those you can get interviews at any of them. If you’re good, you can get the job. It’s that simple. If you’re better than the typical types of candidates those firms hire, yes, obviously they will be open to and would rather and will end up hiring you versus the typical traditional candidate they might hire. A good, well respected pod or LO analyst can join any single manager he wants. Doesn’t mean they will…
Thanks, I appreciate the response!
Shrimp - make money, and show them the money you made.
Simple as that..
Most helpful comment yet, seriously, thanks techno monkey
But you can’t do that at an LO lol
some LOs have pretty good attribution systems for analysts
In impedit iste aperiam perspiciatis doloribus non aut. Et aliquam ut a pariatur placeat ea nemo. Accusamus accusamus maxime sunt voluptas expedita quo fuga. Necessitatibus est porro quod quo ipsum quo nulla ex.
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...