Analyst downside in MM Pods
A few questions regarding analyst downside at these MM platforms:
1) how do the different platforms differ in their approach to retaining analysts after a PM blows up? I’ve heard P72 is more likely to keep people on - is that true?
2) What is the best way to identify new PM’s with the best ability to perform in the MM environment?
3) Does age change the answers to any of the above questions? (Mid-20’s, late-20’s, early to mid-30’s, late 30’s, etc.)
1. Most platforms at least try to keep analysts on if the PM gets blown out. Notorious exception to this is MLP which will can the entire team.
2. Sad but the most likely scenario is that new PM will blow up eventually. Successful PMs at MM don't move around and don't really hire because their process is already solid. IMO best to look for a younger new PM who was most recently an analyst before and has a good pedigree. New PMs who were PMs at other shops most likely got blown out and are starting over.
3. Age usually correlates to expectations. So obviously if you are early 20s you are more likely to be kept on because the cost is lower for the firm
Why the MS to this poster?
Probably got flagged for saying the word "blown" too much
totally one-off and i've never worked there but had a buddy get kept at MLP after his pod blew up. impressive guy though, even for MLP
"Successful PMs at MM don't move around and don't really hire because their process is already solid".
What?? Successful Pms do move. Because they are offered better payout, more capital, or less risk constraints, among others. Some of the large MMs are paying seasoned PMs $10+m upfront to get them to move. Others will move because fund A offers them 20% payout instead of the 15% they are currently getting.
And even if they don't move, what is this BS that they dont hire "because their process is solid?" Analysts m
Calm down dude. Obviously there are successful PMs that move, but out of the 10 PMs that have been hopping around the MM platforms, 9 have probably been let go and 1 was offered a better payout. So by the numbers, a new PM is likely to have lost money at his previous firm.
All of the top MM platforms offer the same deals. If someone is a consistent money maker at a good firm, getting 18% instead of 17% isn't going to get them to pack up all of his shit, hire new analysts and rebuild all of the infrastructure again. If you are making money at a big platform there are no capital constraints - management will be trying to get you to run more capital.
Keep reading your Business insider articles. There are probably a couple people a year who get 10m packages to hop firms. They are the heads of divisions and they aren't hiring analysts. They are building out new business lines at the firm. Most PMs don't get million dollar guarantees, in fact many firms don't even give guarantees.
BI articles? Son, I'm the PM that has moved funds several times, and you are the junior that pretends to know what he's talking about, giving misleading advice to someone that is asking for help.
Peace out.
Lol probably because you blew up
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