Playing devil's advocate here, but what are the pros of working for a HF when you can work for a mutual fund and can take a long-term view (don't have to be right every quarter)? Obv, pay is one consideration, but what are the others?
Also, another basic question but is the Associate position under the Analyst position (I come from a IB background)?
Just throwing some ideas :
More sophisticated and unique strategies. Long term fundamental investing is not the only thing out there. You can only apply some strategies in HFs
On the fundamental side being long/short vs long only changes a lot a things and make the job more complexe and challenging
Extracting alpha, or at least trying to, versus surfing on a beta.
More exiting and dynamic job. Due to the shorter term approach in general. More challenge too I guess
Less hierarchy, less politics, more meritocratic
To answer your 2nd question in most HFs you don't have titles / ranks
You are either analyst or PM. End of the story
its pay.
TBH, based on the most recent HF comp thread, it seems like in aggregate, risk-adjusted HF pay is pretty similar to LO pay. But def agree that HFs provide opportunities to earn outsize paychecks for the best performers
There's alot more HF seats than LO as well.Progression to PM is probably another one.
HF have new launches all the time with new PMs testing their luck, while it can take more than a decade and a lot of luck to break into that kind of role at a LO. And might have to deal w/ more politics.
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