$300mm HF analyst - take it or wait?

seems to be a bit desperate taking an offer at a place under $500MM with probably a less structured training program b/c of its size. What are the track records of the PMs? I think I would wait tbh. If it blows up, that isn't going to look good from a job perspective. Granted you are only an analyst but still...

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Thanks for the comments. Trust me I agree about mindset - I care way less about prestige than most my peers. But stating it as a non-factor is foolish. After all, you mentioned diligencing the PMs in addition to track record (meaning did they work at well named funds). If at some point I would like to run a fund will people be "diligencing" me and commenting on my lack of Ivy League education / well known hedge fund? Just another question I have. Also, there is a prestige post a few discussion below which is right on point with my question as well. Once again thank you and I didn't mean to attack your comment.

If the PM raised 300mm I'm sure he has a good track record. In terms of DD, I'd think of stuff like how long has it taken to get to 300mm, how sticky is that money ie what is the lock up like, what has the inflows/outflows been like, is it institutional money or private money, what is the PMs reputation to work for, is he a nice guy good culture or a dick, what is he strategy for the firm, keep it small or keep growing as fast as possible, is there potential for long term track position if everything goes well, where have others that worked for fund ended up. Those are the questions I'd focus on in making my decision.

As for size, I think if you can find a cool pm, good culture, smart people and good investors I'd probably take that over a large fund at a young age. Way more upside if things work out well.

Are they actively raising capital? $300mn AUM to support a team of 2 PMs + 3 analysts is not a lot. Usually a team runs one analyst for every ~$200mn AUM.

Do they run a levered book? I agree with both Eatmarkers and Chobo.

You're asking in the wrong place, obviously. The fund is plenty big enough to support a nice lifestyle and you'll learn a ton in a small shop. Don't be an idiot.

Bulgesacket11:

WSO,

First off, thanks to everyone who's posted meaningful responses along the way, I don't think I would be in this situation without everyone's help.

However, I'm currently in a dilemma and would love to get opinions from those experienced in the industry. I recently received an offer from a 300mm aum l/s equity HF (~4 other ppl, 2pms. Most likely never have heard of it) in LA and wanted to see what everyone's thoughts are on taking this offer vs. waiting for something more well known. I'm currently a BB IBD analyst ending my second year and have the option of staying a 3rd. I liked the team and position / would like to stay in LA, but wanted to see how transferable this experience would be to another fund if this opportunity wasn't to work out. After all, you never know how well something will work out until you actually start. Assume pay is in line etc. would you take it or reject it?

Apologies for the typos, sending this from my phone / on the road.

Would you rather be in a 10bn hedge fund with 50 people posting flat 0-5% returns or a 300mm hedge fund with 5 people posting 20%+ returns? All about the track record man. Its silly (I've been trying not to use the word tupid) of you to not look at the track record man.

My advice is take it if it has an awesome upper PMs that can generate returns. Plus, if it raises more capital, you're up in the ranks much faster.

Thanks all, appreciate the insight. They don't use a lot of leverage (think its like 30-50% net) and are attempting to raise aum now. Should be enough to go around. I think if a few more things check out, it will be a no-brainer.

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Just make sure they have a bloomberg terminal

one of my friend who has exactly the same credential as you jumped to a $800mm fund in NYC and the fund ended up winding down in 10 months. For a small fund like this, you need to consider your risk carefully.