Hi guys, current MM IB analyst here covering the biotechnology space looking to eventually make the move to a biotechnology investment firm. My ideal eventual landing spot has a long term investment horizon, has a value-tilt, and invests in both public and private companies.
In the past I was pretty against making the move to a multi manager fund because of they generally have such a short term investment focus, but have recently started to reconsider. if I were to use to somewhere to Citadel, I would plan on staying for a couple of years to get some solid training then move to a single manager.
I spoke with a recruiter the other day and he mentioned that people can get pigeonholed once they work at a MM and can't move to single manager funds. Would you all say this is true? How would you all approach recruiting if you were me.
If you don't get your answer here, highly recommend reaching out to people on LinkedIn and getting answers straight from the source.
Also, fuck recruiters.
It's just wrong for the recruiter to tell you that you could get pigeonholed into working at a MM. Working at a MM not only validates your skill but opens up doors into working at SM funds so ignore that noise. Assuming you are covering mostly equity deals as a biotech banker, you should have a pretty good shot at landing a MM fund in a biotech pod if you can look past the short-term investment horizon, which by the way differs drastically pod to pod.
Can't comment on the exact type of fund you are trying to move to (maybe a deerfield or casdin - at a smaller level?) but certainly experience at a MM wouldn't hinder your goal at all.
Thanks for the post, Deerfield or casdin are the exact types of shops I’m looking to move to eventually.
Any thoughts as to how to diligence a potential pod? Especially if they’re a first time PM
Can't say much for that except that you've got to diligence them yourself during the interview process if you happen to get one. You could also network but not sure how the hit rate is for that with HFs
Tenure. References, AUM, returns, etc can help. But first and absolutely foremost - tenure. If they tell you they moved shops because they were crushing it at MM1 and MM2 just had to have them - it’s probably not true. The pay is pretty efficient and moving means rebuilding models and losing months, if a PM moved - he probably got fired. Tenure.
Most single managers won't care about MM background but its absolutely true that a few will. But the kind of SMs that do penalize MM experience are tough to get into anyway.
The real issue with MM job isn't the short-term horizon, but the potential of a short-term career and having to switch seats often. Just diligence your PM as best as you can - start out with an all-star MM PM and you'll crush it.
It's definitely a case by case basis. I do think that you will have a higher hurdle to jump over because the initial perception about your experience will be that it is quite different than what SM do. But if you can show them that is not th case, then I think it shouldn't be a problem at that point.
Case-by-case, if you work for a great PM and learn a process that, while short-term/risk-conscious still produces variant views via good research you’ll be fine. Some pods do that kind of research, some don’t. I’ve found many of the type single manager fund that traditionally would have passed on MM candidates, has adopted more data/risk/catalyst-conscious focus and is open to it. If you are capable of making the mindset shift, MM will be a barrier LESS OFTEN than it would have been 5-10 years ago. For some it’s still a barrier. IMO there is no difference in capability btwn best possible shop folks and people at best SMs. But pod shops are more of a mixed bag - easier to get hired, easier to get fired. I also think MMs have done a good job grabbing more talent early and the bar for juniors out of banking has risen and that’s been recognized by SMs. Just my thoughts.
Agreed with Anchor. For some SMs its just a mental block and they wont consider pods, but others are very open to it especially when hiring for data-dependent sectors like consumer. More so at the jr level than a sector head role
Brutal truth: over last 5-10 years, the kind of funds that "look down" upon pods are prob no longer the ones you want to work for anyway
but then again, neither are the pods
everyone should just quit their jobs
Fate of SMs has been widely divergent over past 5-10 yrs.
Sure, pod analyst doesn't envy Greenlight or any of the classic value trap funds but ask a pod analyst if they'll take a job at Pershing, Tiger, Viking tomorrow...
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