Most Lucrative vs Safest Path?
Say God actually blessed you and gave you the choice to spend a career as an
MD/Partner inat Goldman
MD/Partner in, , APO
PM/Partner at a(Tiger cubs, activist places)
PM at a large MM HF such asor MLP
How would you rank each of them in terms of lifestyle, comp, and "personal pride/intellectual satisfaction"? Here are my thoughts: 3, 2, 1, 4.
One of the main drivers of how I ranked them was the good old Agent vs Principal question - the agent makes risk-free money for doing a service, and the principal takes on risk in order to either make a lot, or lose a lot. The principal will generally do better than the agent, in terms of comp. Also I would always choose a job where I am taking risk than one where I am not, that's just how I'm wired & operate. So that explains why I put 3 and 2 ahead of 1. Jobs at those top SM shops are amongst the most sought after jobs one can get in this business, and I would imagine that is because you can A. make the most there, and B. have a nice lifestyle. MF PE also has nice comp, but the lifestyle piece is weak. I chose option 1 for 3rd place because the comp and lifestyle are nice, but there's no risk in that job. No risk translates to nicer lifestyle/less stress. Choices 1, 2, and 3 all have really good job security too. Now we get to option 4, which I ranked last. There gets to be a point where the agent principal question doesn't matter to me, and I think that point is at the MM HF level. Sure, you can make a shit ton of mula quickly, but you can also lose your job just as quickly. Stress is off the charts, and it sounds like a shitty lifestyle. Plus I'm not sure many people find the MM L/S investment strategy to be mentally stimulating...
Let's here everyone's thoughts