What's it like to work at a l/s SM HF?

There are plenty of threads online about working at MM HFs, and for good reason -- there are people in those roles, SMs are more secretive, and SMs are pretty diverse/different from one another. However, can anyone knowledgable about SMs elaborate on hours, WLB, what the work is actually like, etc?

 

Based on the most helpful WSO content, here's a scoop on what it's like to work at a long/short (L/S) single-manager (SM) hedge fund:

  • Hours: The hours at a L/S SM HF can be better and more predictable compared to the grueling schedules of investment banking (IB) or private equity (PE). For example, one might find themselves working around 12 hours on weekdays and less than 5 hours over the weekend. However, this can vary widely depending on the fund and the individual's role within it.

  • Work-Life Balance (WLB): While the hours might be more regular, the intensity of the work can be high. There's often no need to keep your phone on ring during personal time or to deal with late-night email threads, which is a plus. But the trade-off is that when you are working, the expectation is to be highly focused and productive.

  • Nature of Work: The work itself in a L/S SM HF involves a lot of research and analysis. It's a performance-driven environment where the pressure to make the right investment decisions can be intense. The work is intellectually stimulating and can be very rewarding for those who are passionate about the markets.

  • Stress Levels: Stress can be significant due to the performance-based nature of the job. Every year is a fresh start, and consistent performance is key to maintaining or growing assets under management (AUM). The compensation can be variable, which adds to the stress, but for many, the potential rewards are worth it.

  • Culture: The culture can be less about face-time and more about output and results. This can lead to a more flexible schedule, but it also means that there's an expectation to deliver, regardless of the hours put in.

Remember, these are general insights and the actual experience can vary greatly from one SM HF to another. It's always wise to do your own due diligence and network with current or former employees to get a better understanding of a specific fund's culture and expectations.

Sources: Work/Life Balance - Hours, The reality of HFs, The reality of HFs, Money - What is your goal?, L/S vs LO from a non-monetary perspective

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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