LS HF Recruiting or Known Family Office
For context I am a first year in a coverage group at GS/MS/JPM. I have decided the PE Route is not for me as I like following the markets and the fast pace vs deep dive controlling investments in PE.
I would like to leave after 1 year. If anyone thinks that’s a poor idea please let me know...just don’t think it’s as transferable of a skill set as getting into public markets sooner. Feel like you get 90% of the learning experience in IB in the first 9 months etc.
Based on a previous offer, I could go to a growth equities fund within FO, think levered with very long bias (mostly hedging). The job is in a low COL area, think Houston Atlanta. The fund has performed very well over last 5 years and family has decided to pull money from external managers and greatly increase internal fund allocation. Bosses really like me, and quality of life and pay would be great with visibility into next 5 years. Beyond that step up is to your own sleeve if you deserve it.
Advice on how I should consider this? Should I recruit for a NY based HF for experience or go to what I know is a great shop in city I’d eventually like to end up? Thanks
Unless you have a very strong desire to be in NYC, that seems like a home run and a much higher expected value than whatever hedge fund you might get into (maybe not true if you can get into an Elliott, Third Point, etc. but the vast majority of people going into hedge funds don't end up at shops like that).
Appreciate the insight. Feel like only thing holding me back is wondering what if. As in what if I could’ve gone to a large NY shop and crushed it but know that’s wishful thinking and low probability
bump
Have a friend who was in a similar situation. He took the offer at a NY tiger cub ($5b AUM).
You seem smart and are at a top bank, so chances are you can get a job at a well respected single manager.
If you go to the atlanta fund now, and things don’t work out, you won’t have strong pedigree to fall back on. That’s important in the HF job market.
If you go to a well respected fund now, chances are, in 2-3 years if you wanted to move to atlanta, you could still call the guys up and ask them for a job. If they’re doing well, they’ll need someone like you. atlanta is a hard market to recruit talent to, and you’ve gained valuable experience. If they don’t respect your decision to go for a brand, scale, and a couple more years in NYC, then chances are you wouldn’t want to work for them anyways.
The upside of the atlanta fund should not go away in 2-3 years and your downside would be meaningfully protected.
My opinion would change if (1) atlanta PM has excellent pedigree (Eton Park or Viking type place) or (2) if the fund is already very sizable with few investment professionals.
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