L/S equity hedge funds historically were a high compensation, high career volatility sort of place. But for those who succeeded it was one of the most lucrative career paths out there. Now there are a lot of pressures L/S equity hedge funds face between 1) fee compression, 2) shrinking alpha opportunity, 3) stagnant net flows from investors, and 4) a shrinking investment universe (companies are staying private longer and given merger activity the number of publicly traded companies is 1/2 of what it was 20 years ago).
So my questions are:
- 1) Is it still worth going down the L/S equity hedge fund route? Will this business exist in 10 - 20 years?
- 2) Are there other types of hedge funds that are still attractive from a career standpoint (for someone with a corporate finance background)? Again not talking about strategies that require very different skill sets (e.g., a quant trading firm can kill it but often requires more of a programming / math PhD sort of background).
Bump
Eveniet non rerum nesciunt aspernatur. Laudantium nihil reiciendis tenetur quis non. Praesentium doloribus optio minus atque. Ipsam maiores magnam velit hic aut perspiciatis explicabo. Commodi vitae voluptates est fugit. Expedita ad maiores totam dignissimos possimus molestiae. Accusantium autem laborum enim est.
Suscipit aut debitis molestias qui illum consequatur et. Doloremque tempora ratione sunt beatae et quos. Impedit dolorem cumque nemo.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...