What if I flush out of a HF after undergrad?

Have the opportunity to do BB IB or SM HF out of undergrad. SM HF is the long term goal and I'm pretty confident I'd do well in that role (did one internship in IB and the other at a similar HF). I know SM HF type investing is my long term goal, which is why everyone I've asked has told me to start down that path as early as I can since I'm certain that's what I want to do in the future.

My one hesitation though is what happens if I don't perform well and end up washing out within a year? Not like I could end up back in IB after a stint like that. What are HF exit opps like if I don't last very long there? I'm assuming mostly other HFs but would I even get any looks?

13 Comments
 

What HF is it? How many AUM? If you flush out of undergrad it depends on the name brand of the fund on your long-term prospects. I know people who have flushed out and end up going through the P72, millennium, and other pod shops. Moving to other SMs requires a ton of networking which might be doable. But PE will basically be out for you (absent like super rare instances). 

 

Isn’t the premise of what he is asking based around the fact that he wouldn’t do banking? Anyways from what i’ve seen likely be to other hedge funds or maybe AM. Credit shops could be possible also depending on what you was covering at the HF.

 

I don't think you're thinking about this situation rationally and at best have let your anxiety get to you. Unless you have convinced some large SM you are a prodigy that can hit the ground running day 1 with no oversight, your career risk inside of 1 year is actually very low. Your first year is training. There is probably a minimum 4-6 month initial ramp period, not just on specific names but also integrating with the team, learning processes, etc. You are likely to be given a lot of rope, but I'd be surprised if they gave you enough rope to hang yourself within the first year. Just recognize it is what it is. Its a huge accomplishment to go to a SM HF out of undergrad (I'm assuming it is a strong shop), but don't let your ego get in the way - remember you're training and have a lot to learn. Careers are long-term, not short-term. In 5 years you will look back at your first year in the industry and wonder if anything you did actually mattered to the team. Tl;dr, relax. 

 

Hi I’m recruiting for full-time, I was wondering if you could DM me what SM Hf you got ? Would appreciate it a lot, thanks!

Hophop1
 

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