I plan to recruit for Equity L/S in the future, and am trying to figure out if I should aim for multi manager or single manager funds. I find that my investing style is mid-long term, and I don't try to predict the next quarter's earnings for a company. I have the following questions that I was hoping to ask people in the industry:
1) On Performance - In general, long-term investing is often touted as the "best" way to invest, with Warren Buffett's investing style often held as the gold standard of value investing. However, MM platforms have a tendency to trade short term, around quarters and catalysts. Does the fact that platforms like Millennium, Citadel, Point72 are still going strong mean that such short term investing strategies potentially work just as well as the Warren Buffett style even over the long run?
2) On Compensation - Assuming similar performance and AUM of the SM fund vs the MM pod, how does compensation at a SM compare to that of a MM platform across all levels of seniority?
3) On becoming a fund manager - An advantage of working at a MM platform is that, assuming you do well, you may rise internally to become a PM. Given that it's arguably getting increasingly difficult to attract capital for a new fund, would working at a MM platform be better if you want to run your own fund as soon as you can?
4) On Overall Stress - (Maybe this will be answered by the answer to question 2) I have no idea about the average performance of MM vs SM funds. But assuming the performance is similar, wouldn't most people prefer to work at a SM platform, given the fewer hours and stress? If you end up with the same performance, I would rather take a few weeks to analyze a company to invest in for a 1 year horizon, as opposed to frantically predicting results for every quarter for each company and having my neck on the line if they don't shape out in my favor.
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