Start-up Hedge Funds & Fake Interviews

The number of smaller hedge funds that...

  1. Initiate an interview process and accelerate to a "case study" with almost no other interactions outside of a first conversation
  2. Layer in superficial time pressures/constraints ("we really think this could be a fit, but we have another candidate waiting in the wings", etc.)
  3. Schedule a time to present or review the name/investment wherein they reveal they know far, far less about the name than they initially claimed
  4. Then, either:
    1. Ghost you completely despite the presentation receiving plaudits and strong acknowledgments 
    2. Reveal compensation that is 40-50% below market (makes 1st year IB pay look generous), effectively driving the interviewee to end the conversation on their own terms

...is outrageous.

I don't know what recourse there is for this (read: there isn't any really), but I've considered sending bills for time spent, filing complaints with random authoritative/regulatory agencies, etc. 

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Comments (3)

Most Helpful
  • Associate 1 in VC
Oct 19, 2021 - 11:23am

I worked at a 300m L/S fund out of school as a junior execution trader with classic 90s fund abusive culture. Did not stay long. I pretty much worked 90 hour weeks every week and was always doing assignments on the weekend. And get this I was being payed $60k annually with no bonus incentive in the contract lol.

Did what I had to do to get some full time experience but this is common for young roles I suppose with the promise your pay will rise dramatically if you put the work in. Bullshit hahaha. Would rather have been a prop trader looking back now.

So I think the reason these funds get away with this or think they can is cause so many of them are run by people who are well known and did a lot at a different fund. The payment is super top heavy and I guess they feel since they were PMs or analysts at Bridgewater, SAC, and other giant funds that may not exist anymore…people should feel blessed to work for them.

  • Analyst 1 in HF - RelVal
Nov 17, 2021 - 10:14am

Currently working in one of this kind of small hedge fund. I will tell you what is happening inside the firm.

The boss might have been in the industry for a while, has his small tricks in managing a portfolio. But he has never been a CEO before and has no idea what to do. 

The CFO or the marketing person and the other guys joined the firm because they want to have an early retirement and easier lives.

The allocators either ignore you or they try to keep roasted for years going forward.

So yeah it is a pretty shitty place. Definitely doesn't worth your time, especially when the founder is a naive and arrogant jerk who thinks his experience would guarantee his success in the firm management. I am just so tired of those stupid tricks he used.

Nov 17, 2021 - 11:45am

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