What happens if a Hedge Fund intern generates a lot of money?
What would happen if a Hedge Fund intern were to be directly responsible for making the firm >20mio dollars in a hypothetical scenario because he came up with an original idea?
Would he get a share of the profit? Would he get a direct (advanced) offer, f.ex as a (Senior) Analyst right out of College?
Thanks
Impossible for an intern to be “directly responsible” for generating 20mm because they won’t be making trading decisions.
Most of the money is made deciding when to add, how much, when to cut, when to exit, etc. rather than on “good ideas.” That’s why PMs earn 7-8 figures.
If you’re lucky, good ideas during an internship will get you a return offer for a junior analyst role.
nothing
No decent PM would put enough capital on an intern idea to generate 20m$ pnl without himself or someone else with experience taking a look into the idea.
So once someone works on the intern's idea, well it is no longer only the intern's idea. And implementation of the idea is key : like timing of the trade. So success will be shared.
I wouldn't expect any bonus for interns. It will definitely helps to get a full time offer, but other parameters will matter too.
You don't understand how it works.
Any monkey can come up with an idea that randomly hits the bullseye. You don't know if someone actually had skill until you dramatically increase the sample set and timeline.
PMs are paid for risk management and being able to consistently grind out edge. No intern can do that.
Agree with all. My first thought was:
that intern gets their head checked and then gets asked to leave their ego at the door.
but the right question here is: define ‘directly responsible’
Firm had an intern who did the legwork/interest on an idea that a PM believed in, PM let seniors know the intern helped with this process and as result the intern was offered basically a full time gig. Very very rare situation.
Also had a classmate ages ago that impressed as sophomore intern was offered back and given full time gig with direct line to APM. Now he is a cio at another firm when former firm cio is his boss. Again very rare and think tech meltdown may have crushed him possibly.
Either way never has to do with “P&L generated” more so if an intern can show they basically enjoy and ready for this job right away, in that case they are miles ahead of others (younger) and a sr takes notice usually.
Ya I was interning at an HF last summer that gave the top kid a nice bonus
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