Q&A: Tiger cub hedge fund analyst, previously worked in PE

Hi all - 

I have seen a number of misleading posts/comments here on WSO as it relates to both PE and the HF world. I figured given I used this forum quite a bit to get answers to some of the career-related questions I have had in the past, it'd be nice to provide my opinion on some of the common questions asked on here (e.g. PE vs. HF, what it's like to work at HF, SM vs. MM, thoughts on b-school, etc.).

For context, below is my background: 

  • Graduated in 2017 from a target school and went into PE out of undergrad as an analyst.
  • Had an offer to stick around as an associate in PE, but decided to leave to pursue an HF opportunity that came up.
  • I was originally at a single manager long/short equity fund (think Select Equity, Darsana, Route 1 type fund), but I am now at a tiger cub fund.

Look forward to answering any questions. Thanks. 




 
Most Helpful

Thanks for doing this.

  • What were the motivating factors for you to move from PE to HF specifically? Were you only looking at L/S?
  • What type of PE fund did you leave from? (buyout vs growth, LMM vs MM vs etc.)
  • Do you currently cover similar sectors to when you were in PE?
  • What were in your opinion the major skill sets that carried over well from PE?
  • What are some of the new skills you're having to start developing from square one?
  • Did you have any personal experience managing public equities in a PA or did you come to the role completely fresh?
  • Biggest changes to your workflow and other on the job processes?
 

How would you compare the differences between the recruitment process for the PE analyst role vs. the HF analyst?

 

For someone who loves following the markets and enjoys short-term trading (1-6 months) over long term investing, do you think I would be a good fit for multi manager hedge funds? My main concern is everyone saying how there is no job security and I could be jobless after a couple years with no where to go, is this true? If it is then what's an alternative career focused on trading that is more stable? 

Sidenote : I do not care about pay as much as I do about playing the game that is the market.

 
  • Do you think PE/IB is necessary to being a strong HF analyst? I know many do it but do you think you would've been fine entering out of undergrad?
  • Why switch from a Route 1 type shop for a Tiger Cub?
  • Possibly related to the above, how do you perceive your opportunity for upward progression/making PM at these two funds? Would you prefer to start your own fund or make partner at an established fund?
 

Thanks for doing this!

How's your personal investment process evolved from your time at the SM L/S fund to your current role at the Tiger Cub? What are the biggest differences between the 2 funds in terms of mandate and process?

What do you think you need to do to keep improving as an investor? What changes to your process or thinking have had the biggest results from a learning / compounding perspective?

 

Go to a target and going into PE after graduation, so your background resonated a lot- thanks for taking the time to do this. Is there any tradeoffs between recruiting to a HF as an analyst versus as an associate? Interested in L/S equities in the long run but thinking about doing the 2+2 A2A path first to build up some experience before making the jump, so was wondering if staying on as an associate before recruiting to HF would limit opportunities as I'd be perceived as lacking genuine interest etc.

 

Can you talk about some of the more interesting analytical edge you’ve seen being exploited within the different funds you’ve worked at? Always curious about different ways of establishing questions and finding answers. Thank you.

 

1. How would you characterize risk management at your Tiger Cub (e.g. types of metrics/factors one looks at and degree of adherence to those metrics)? How would you compare risk management there vs your perception of it at MM equity pods?

2. Turnover of investing staff (for junior/mid-level/senior employees). How frequently do people leave voluntarily? How frequently people are fired? What are the most common reasons for exits?

 

1) What's your comp in a bad year? Good year? Exceptional year? 

2) What is the culture like? Is there a lot of yelling from superiors? Is there high turnover? How is job security? 

 

Thanks so much for doing this.

What was did your prep look like for recruiting at tiger cubs? Was it investing knowledge built over time or was working in PE particularly helpful for that?

For people who start in RX banking, are the odds stacked against them to get into a tiger cub? Is it primarily those from top MFs (BX/SLP) who have the best shot?

 

How much do you, or your seniors, talk with analysts from other funds? Is it normal to share and discuss ideas with others?

Do you have any view or know anything about the HF space in Europe? Most MMs are well represented in Europe and the space is similar to NY, but there's less information on WSO about great SM's or "Tiger Cub" equivalents

 

Thanks for doing this. Also a 2017 grad. I'm at a large PE shop, and I hate the amount of BS modeling. The level of granularity is not helpful, and most of the modeling is performative. I find that our models take weeks but often, we never actually learn anything useful, and think that most of the more interesting insights come from biz ops type metrics (e.g., learning about company operations - not building complex financial models).

I'm thinking about moving to HF for a number of reasons, but wanted to ask about this point in particular - are you a modeling junkie? How much of your day to day job is a modeling? When does model building come in - when you are about to execute a position? When you first have an idea? It is a make or break for me whether HF roles have this much garbage modeling.

Thank you very much.

 

Whenever people say there going to post an AMA, I wish they would also specify how long the question intake period is and when they plan on answering said questions.  Nothing wrong with taking a few days or weeks to get back to the questions but specify that in your initial post please OP.

 

lmao dude's probably interviewing with an analyst who has the exact background he posted and he was looking to source good questions to ask 

 

what do you see as your 5-10 career horizon/plan? Do you see yourself continuing to stay in the investing world or would like to take the operating seat at some point?

 

Agree that it would've been good to get a timeframe for replies.

But would also suggest people here to check their entitlement. The level of impatience after only a couple days since original post during a work week is rather childish.

 

does having close ties or working at a tiger cub/grandcub mean anything in terms of you developing a well-rounded and competent investor mindset or is it more of a brand/prestige factor?

 

Do you think a growth equity PE analyst seat is sufficient background to pursue l/s equity hedge funds later in my career. I feel like the sourcing skillset I'd build would not be super relevant to a HF.

 

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