Would greatly appreciate advice from any industry veterans, especially traders/PMs.
A couple weeks ago I met with a PHD researcher at a top target school who also works at a hedge fund as a researcher for a particular sector. He and several of his colleagues (who all research different aspects of the same industry at the school) want to start a hedge fund focused on shorting companies in each of their respective areas of study that they believe they can identify problems with. None of them have finance backgrounds and they're actively looking for people to help them get started. We spoke for a bit and I shared some thoughts I'd had about their industry and he gave me his email and told me to touch base after the new year.
I'm currently an undergrad at a non-target who has been focused on learning about M&A/RX IB and distressed debt/special sits investing. I have an alumni who joined a top hedge fund as a trader out of undergrad urging me to try and join this team as some sort of junior trader and help them get started as a way to get my foot into the industry. He did the same as a trader for another start-up fund while he was still in school.
What can/should I do? If I were to join, what could I read to try and cover gaps in my knowledge about executing trades/helping with administrative work?
If you feel like you can joint these guys and stay on track in school then I don't see what you have to lose.
That being said I wouldn't look to specialize in shorting. Short specialists have never gotten rich. Its useful as a risks management tool if done right because it allows you to take more risks on the long side. But shorting by itself just doesn't produce great returns. But would be interesting.
I'm not interested in specializing in shorting, mainly just getting the experience of working within a fund and executing trades. I do however think that learning about the fundamentals of shorting and identifying weak points within companies would carry over well into a special sits/distressed environment which is ultimately where I want to be.
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