Small Hedge Funds
Does anyone know of a lot of small hedge funds under 200m aum? I am at a non-target with a 3.7 and am trying to break into some type of trading. Does anyone have any other ideas I could be doing to try and break into trading with this type of background?
I would not be targeting a small hedge fund if your goal is to learn how-to trade. You should network and try to get into a bank or legitimate prop shop. No hedge fund that has decent/large scale training programs is going to recruit from non-targets (DE Shaw, Citadel, etc.).
I'm in touch with a macro PM @ Citadel and he went to a non-target. However, he had a decade of experience, hence I think working at a small HF could be beneficial for OP.
That is a pretty fucking stupid comment. Seriously.
make sure you know what you're getting into i doubt many small hedge funds have the resources and/or willingness to fully train you and teach you how to manage money
also if it goes under before you get a chance to do anything you're screwed
Truth. And you might end up doing risk analysis and coding in VBA all day instead of learning money managing strategies ...
There are a few routes.. the most common is probably BB program-->HF.
With that said though, if you really want to get into the HF business, I'm sure if you really put your networking skills to the test, you could find a few funds who are looking for interns/people to hit the phones for them. It would be a chance to learn about the business and try to network with the traders within/learn from them.
If you want a decent list of HFs.. barclayhedge.
I think big funds are overrated. Smaller funds give the personal attention, responsibility and hands-on experience to be long-term success. The below article lists out a number of notable ones. Good luck! Top Mid-Sized Hedge Funds Bulk-Up, Oversee $55.3 Billion http://www.hedgetracker.com/article/Top-MidSized-Hedge-Funds-BulkUp-Ove…
[quote=nyhedgefunder]I think big funds are overrated. Smaller funds give the personal attention, responsibility and hands-on experience to be long-term success. The below article lists out a number of notable ones. Good luck! Top Mid-Sized Hedge Funds Bulk-Up, Oversee $55.3 Billion http://www.hedgetracker.com/article/Top-MidSized-Hedge-Funds-BulkUp-Ove…]
Indeed. There are pros and cons to both..
how to find small hedge funds? (Originally Posted: 08/28/2014)
Anyone here have advice on finding/locating small hedge funds that are located in cities like say Austin, Dallas, Minneapolis, etc.? And by small, I mean $50M-$200/300M. Unfortunately, googling the "city + hedge fund" often just leads to the names of the big ones that everyone knows. I I know most people (including me in the past) have focused on all the largest funds, but I think there's often a bigger opportunity in smaller funds if you're willing to take the extra risk and give it a shot (that and they're more willing to hire you if you can show that you can provide value vs. a larger fund that's all about hiring for a certain type of pedigree or background).
Wasn't sure if anyone here had any thoughts or advice on this.
Thanks!
There's a site out there that sells excel sheets of contact/fund info for funds in specific regions/states (NE, SE, etc). I'll try to remember the name if someone doesn't post it or you can't find it
If you can get access to a Bloomberg, run FLNG which shows hedge fund 13F filings. HF have to file if >$100m in AUM (with some exceptions). There are a lot.
Filings have their mailing address. It'll be the most comprehensive list I think you can come up with.
or, go here: https://searchwww.sec.gov/EDGARFSClient/jsp/EDGAR_MainAccess.jsp
Click "Advanced" Search for 13F-HR and it'll produce the forms. You should be able to see addresses. Maybe you can add a text search for "Austin"
Thanks for this.
This article highlights some of the Top Mid-Sized Hedge Funds in the US. I think they could also run a custom list for smaller hedge funds you that are based in 2nd tier cities: http://www.hedgetracker.com/article/Top-MidSized-Hedge-Fund-List-Reveal…
Small Hedge Funds/Asset Management companies (Originally Posted: 10/29/2014)
Hello,
Can someone please let me know the names and contact details of Small Hedge Funds/Asset Management companies, typically with AUM below $200mn.
Tons of thanks in advance
this site has all the info you'll need
Small Hedge Fund Experience (Originally Posted: 08/08/2011)
I was wondering if anyone out there had any experience working at a small hedge fund ($500M and below). Obviously every fund is different but I was wondering if there were some strengths / weaknesses that were common to all, especially in the current market.
i interned in a pretty small hf back in the days and i can give you some details...
you learn a lot, mostly directly from the PM. If your PM isn't an ass, you will really enjoy your experience and learn the ins and outs of investing
The bad part...the fund might go under if money allocation isn't done correctly and some shit happen in the stock market.
Like you said every fund is different and Ricqles made some good points, here are some pros and cons:
Pros 1) Direct access to decision makers: typically a small fund (
That's helpful, thanks guys. Is there any way to really gauge the risk of going under? Clearly fundraising in this market is out of the question?
Fundraising is not out of the question in this market. Best way to gauge the risk of going under is to look at the portfolio. Barring that, listen to or read descriptions of the portfolio.
Is a junior person is going to get a good idea of the fund's expected performance (or volatility) from looking at a portfolio? I would guess no, though it may depend on strategy.
Longevity of the fund, background and connections of the founders, and the concentration and tenure of the LPs are all helpful, but you may not be able to get much of a clue on this during the interview process unless you have a very strong hand to play and can insist on answers.
Small HF (Originally Posted: 07/26/2013)
Hi All,
I've perused the site for a while, but this is my first post. I'm currently a SA at a MM bank on the West Coast, entering my senior year (non-target). I have decent experience on paper, good GPA, and I think a fairly good chance at FT at a BB in NY, due to decent alumni network/personal contacts. My other option is an analyst position at a very small multi-strategy HF in Texas. Is it worth it to go straight to HF, or do I need the IB analyst experience? Any advice welcome.
How small is very small, and what does "multi-strategy" mean in this case? Very small multi-strategy sends up red flags for me: it suggests someone who thinks they can go back and forth between "value investing" and "trading macro," and the quotation marks are there because usually someone who thinks like that can't really do either one.
what part of tx?
also..how strong are the backgrounds of the people that work there?
I'd be careful. There are real challenges to running a smaller hedge fund. Once you get to the 150m - 200m size, economies of scale start to kick in. Before then, overhead and expenses can eat through most of the management fee.
Are these guys being seeded by a larger fund? Do they have any sort of arrangement in place to reduce operating costs?
Dallas area. The fund manager is a former portfolio manager at a $1B+ HF, according to them their returns have been very good.
I don't believe it is a seed fund, and I am not aware of any arrangements.
Small Hedgefund Offer (Originally Posted: 11/11/2015)
Hi,
I received a small hedge fund offer. The fund has 25$ million under management. The role is to be a junior trader, receiving 6 months of intensive training from a senior trader. I will have a lot of responsibility as this team is quite small. They start up a new office in a a non-financial city and that is why they are hiring.
I was wondering, I have a gpa of 3.50, do not have any relevant work expierence, and will already be 23 after I graduate. Do you think working for a hedgefund of this size, being unknown, will look good on my resume? I checked the management team and they all have backgrounds of trading, they have not worked at any large banks or consultancy firms.
The fund is 3 years old and has been doing alright, above market, last year they only had 5$ million under management and this year 25$. It is clear that they are expanding.
Also this is in Europe so not USA where 25 million is nothing
Do you have other offers?
Nothing, I got denied by Credit Suisse, a private equity firm, BlackRock, and waiting for GS and Barclays to review my resume.
The owner of the fund has increased the minimum investment of 100k to 250k and wants to raise 100m over the next few years. The fund is funded by 100 participants, mostly own money and friends as well as colleagues.
In terms of mentoring what do they offer you that you can't get at GS and Barclays?
See below
They offer me half year worth of intensive training at their headquarters by a senior manager. After that I work at a new location while being responsible for trading strategies. Guided by a senior trader we will look for more opportunities within the market, I assume this goes beyond trading.
But yeah not sure... I mean like to be honest I feel pretty pessimistic about ever landing a job or internship at GS for example.
What is with all the people with good job offers who aren't sure if the prestige is high enough? Who cares? Take the offer and learn from it, not like you have any other options anyway. What is even the question here?
That's true. Join. Leverage the experience and move on to a better place.
Thanks
In my opinion, "prestige" can be helpful but you just have to know what you want. If you're looking to make a career in HFs, take the offer. However, if you're trying to leverage a HF job as a springboard into something else over the next 2-3 years, I would be more wary of going here. Prestige is a tool to maximize optionality but should not be prioritized for its own sake.
Thanks guys
Out of curiosity, how did you come about this offer? At $5 million AUM just last year but apparently rapidly growing, I would be curious as to their recruiting/hiring methods?
see reply
Emailed several hedgefunds, this one replied back, apparantly we knew the same people through our similar background. Just got lucky ha.
Writing To Small Hedge Funds (Originally Posted: 02/12/2016)
I am a student at a non target european university and my one contact at a bank has let me know that they no longer offer internships so I am out to fend for myself.
I want to write to hedge funds all over Europe for a possible paid internship. Should I just admit to them that I am from a non prestigious university with no relevant experience in the field of finance ?
I do not have any real verifiable track record of excellence/success but I am a hard worker willing to do whatever it takes to get ahead.
I am looking to apply to smaller funds who may need some the extra manpower around the office. Is there any directory which lists all the hedge funds in an area without a 4 figure annual subscription fee ?
Am I deluded into thinking I can get an internship this way ?
Any advice is appreciated.
What geography are you looking for in Europe? What passport(s) do you hold?
Your best bets will probably be London if you are from a non-target and even then its tough. Does your school have an alumni directory that you can look through/search?
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