L/S vs. Long Only
Was curious how people on here would evaluate the career/comp prospects of working at a large long only fund or working at a ~$500 mil l/s fund. What would people think about job excitement, career opportunity, etc.?
Apr 03, 2021Apr 03, 2021
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Comments (8)
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More upside but with risk = L/S
More stability = long only
Would take a $100bn+ long only job over a $500mm hedge fund, unless the hedge fund is founded by a well respected PM, scaling AUM rapidly and is very lean. Much greater stability with LO.
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Learn moreEcho above, also long onlys have longer duration capital, so HFs will be a lot more short-term oriented (how short-term depends on the lineage of the PM and what kind of LP capital; If run by ex-pod ppl, expect a pod-like risk limits as a single manager).
If you like fast and more upside (with more risk), go L/S. Otherwise, go long only. But, market is efficient: RELATIVELY, long onlys are much harder to get into.
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While there is definitely upside in a sub-scale L/S hedge fund, it generally seems to be asymmetrically a downside proposition. There's no guarantee of scaling AUM, and I'm sure most new hedge funds don't end up scaling.
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