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.?

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Apr 11, 2021 - 9:26pm

Echo 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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Apr 11, 2021 - 11:19pm

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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