I'm a burned out sell sider looking for less stress and better hours. My end goal used to be working at a tiger cub, but after 3 years on the sell side, I realize it's not for me. Are LOs the most chill exit opp or should I consider something else?
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concentrated long only w 1.5-2/20 fee structure gonna be different than xyz style factor fund at fidelity
source: interned at the former
that’s because the first one is a hedge fund.. not an AM house
How many hours do you work?
Probably marginally more chill than sell-side as you don't have to interface with clients but this is partly offset by the need to work with internal clients (PMs). If you are looking for max work/life balance, would think investor relations is a better path. Also worth considering prospects for the industry given trends in fund flows. Analysts at the biggest asset managers will be fine (although I'd guess aggregate investment professional headcount will decline, even at those shops) but I would have a tough time personally feeling comfortable taking a career bet on a mid-sized asset manager that is not seriously differentiated in some way
100% LO. it was extremely chill. saw most of my peers work 40-60 hours/week. comp tops out around ~$200-225k, but solid place to buckle down and learn for a couple years.
however, make sure you talk to former/current juniors there to get a sense for hours worked and level of mentorship. not worth taking it easy if you don't have good resources to learn the trade. also, easy to get complacent, so make sure you have a goal in mind.
edit: comp above is for junior level. much higher if you're a post MBA / analyst hire.
I clock in at 1 PM do some bong rips & then leave at 5 PM. Life at Lowes is pretty great.
all bout that perm capital, my friend
Only LO I have familiarity with is Fred Alger (and they have shorts in some funds/hedge funds as well) - personally, it seems to be very much what you make of it. Lots of kids from target undergrad and MBA as well as IB who prioritized WLB. If you wanted to be a top performer, you could easily outwork others, but it is also very possible to coast (easily could leave office by 5-6 PM with little/no risk of firing, especially if your recommendations do well). As others have said, AM vs HF structure will influence this big time (I don't get how a hedge fund could successfully charge 2 and 20 with no "hedge", but that's beside the point).
usually with a high hurdle rate (6-10%) before you can collect any 20
some also do privates/crossover stuff
Gotcha - this is actually helpful, thank you. +1 SB
Idk if OP is looking to go to AM in a junior position or not, but if you are, it is similar to the sell-side in the sense that it is highly dependent on who you work for. If you’re working for a really intense analyst or PM, your hours could actually be worse (and vice versa). Also dependent on whether you’re in a sleepy sector or hot sector (if you are at a sector based firm), as responsibilities to follow / assess everything going on will add to your hours. That said, on average, my guess is that hours are slightly better overall. Obviously also dependent on firm culture and you’re work style.
Most AM firms you may consider full LO really aren’t and incorporate some Shorting strategies to certain funds. Also I’ve been told by numerous PM’s now transitioning over from a SS bank to an AM firm is incredibly difficult as they tend to prefer now to hire undergrads.
Go ask an analyst at Capital Group/Artisan/Dodge & Cox how chill their life is...
I’m going to guess you’re implying it’s pretty chill, since those shops have such low analyst turnover?
http://badbooksgoodtimes.com/wp-content/uploads/2016/07/parks-and-rec-i…
Trust me, nobody at a LO has ever said.....ah, shit, it sucks that my names are underperforming but I'm not worried because I work at a LO and have job security.
truth. that said, you can underperform for a good while longer...assessment period is usually longer, like 3 years. usually don't have that luxury at a HF.
https://i.pinimg.com/originals/73/40/01/734001bfc6513fa0589f93c6963180d…
If you're looking for a chill life as a public investor, then yes LO wins vs HFs...not a debate. If you're looking for a chill life overall, finance shouldn't be at the top of your list.
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