High turnover/stress at multi-manager platforms?

Ovechkin08's picture
Rank: King Kong | 1,226

Hi guys, just wondering if anyone has any insight into the culture at multi-manager shops like Balyasny or Citadel. I get the impression that these are highly stressed environments with lots of staff turnover. If you're an analyst at one of these places and your PM gets the chop after a few quarters do you automatically get the chop too? Also, can someone explain the stop-out risk limits at these places? Is it on a position or portfolio level?


Comments (3)

Mar 21, 2015

Curious about this too. I asked about the stop out limits on here a while back but don't remember getting a specific answer. Based on a recent article in Bloomberg about SAC removing their policy of cutting a PM's risk at a 5% drawdown and firing him at a 10% drawdown, I'd say those would be ballpark numbers (portfolio level). But if anyone has specific numbers I'd be interested.

Best Response
Mar 21, 2015

Can't tell you about the effect on junior level personnel for sure, I'm sure it would vary depending on the situation and what is going on at the rest of the firm. My firm is probably the polar opposite so I don't have any direct experience to relate.

All I can say is that I would avoid any such place like the plague. Of course strategies differ. But a good firm will have low turnover and a long-term horizon. Anyone who thinks performance over a quarter or two or three means anything is not an investor, they are traders. Nothing wrong with that, but if your goal is investing, those are not the places to go.

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Mar 21, 2015