Terrified MF PE Intern
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Could be. Generally the job of a HF analyst is to find good, interesting ideas for themselves and/or their firm. Maybe after sometime in PE you may get better at finding ideas or realize you prefer PE. Also not every fund needs a new investment every week or so. Some places at MM maybe I have heard like Citadel some PMs want a new idea each week. Some places like Pershing I think are more like PE in that they maybe find one good idea a year potentially. HFs are pretty varied in that sense. One of my friends who has been running his own fund for over a decade has from what I have seen only invested in like 5 different names more or less over that time period. It depends I guess. Either way best wishes and good luck :)
Multimanagers fundamental aren’t really ‘idea each weekend in the same sense as Pershing. It’s mostly sector coverage (I.e. ~30-40 set companies you keep updated models and forecasts for, meet with mgmt. etc.)
Most of these look like a ranking system, of your ‘coverage’ or at some MMs a proposal of upcoming events/catalysts/trades in that universe. There’s an aggressive ramp to learn your sector, but also much overlap since they’re related. As you add names, your ranking / trades within that group takes up more of your time and adding new names takes up less. Now making a good ranking and/or finding conviction in frequent trades among these groups IS HARD, and that hardness depends on your ability and on the sector. At a very junior level you probably wont have to pick what names to cover or what ideas to evaluate in a single manager role, if so it wont be 1 per week actionable high conviction ideas until you have ramped up familiarity and several stocks of coverage (or in a single manager, you’re probably being given a lot of ideas to triage, evaluate and kill or follow and the # of actionable ones will be low and much longer evaluated)
Finally someone who understands what many people do in an MM construct. You have your coverage and you have a forecast on all the names in that universe. Once you understand the models of all these companies, your job is to have a pulse on every company in your coverage all the time so you can consistently update all your models and forecasts. The strength of each forecast is going to be different at any point and you will rank them, trade them, and size them accordingly.
That’s normal. You have no knowledge and you’re skill is adjusted appropriately by your ego. Keep learning, you’ll gain conviction.
At this point in your career, enjoying the process is more important than getting to the right conclusion.
Completely normal, at least in my experience. I have a couple names that I have good conviction in, but that are not trading at a price that makes sense to enter at. My PM expects 1 name a year from me.
Get ready to bend over
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