Should I join a tiny (2-man $12 mm) start up HF?

Jack-Pham's picture
Rank: Chimp | 10

First off some background about myself. I'm an international student at a non-target in Australia (pretty much no-name for ROW), about to graduate in Dec 2019 and have registered for CFA Level 1 in the same period. I had 1 ER internship at a fund in my country and although it helped build my investing philosophy, it's a frontier market so I did not learn a whole lot on the technical side. Recently, I won a small ER competition and was offered an internship at a fundamental HF (I did not really know how small it was back then). Tbh, I really enjoyed the internship and the work culture there, which is extremely lax compared to what I've read about NY, London, etc. on wso. The PM has worked at a few large asset managers and hedge funds, with lots of experience in equity investing in EU and US (to me it seems so).

However, I discovered the fund's aum is only around $12m though and given the 1.x - 10 structure, I know that I will be severely underpaid. Money is not really a problem for me, because even this low salary will be a massive amount where I'm from. And as much as I love my country, public equity investing there is extremely underdeveloped (insider trading is rampant, corporate governance = 0), someone in my position would be able to make a lot of money in the long run, but learning potential is very limited. My end goal is to move back there after 5 - 10 years working abroad, or to Singapore/HK working at an Asian LS equity shop that has exposure to my country's market.

That being said, I would like to know if accepting a position at a fund this small would prevent me from getting jobs at bigger ones? I haven't started salary negotiation yet, but I can feel the PM wants to speak with me about this in the next few days. Is there anything I can leverage to get higher pay?

Comments (2)

Aug 14, 2019

Hard to make decisions in a vacuum. What is your next best alternative?

Aug 14, 2019
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