Keeping this short - I am a bit over five years out of school and have worked as an Analyst at a long only fund and a L/S family office (current role). We are quite tiny, but the family's net worth is well into 9 figures.
I took a cut in pay from my last fund (around 170k all in previously), to help launch about a year ago. (Also small note, I am American but based in Asia running a US portfolio). This past week my boss (theres only a couple of us decided to give me 5mn to start my own PnL into Q4 with another 20m to be seeded throughout the next year.
My questions are: 1. How does one transition from contributing research ideas to running a portfolio and what are your screening strategies, tools for risk analysis and other important things you keep in mind? 2. What sort of fee structure would make sense to negotiate for compensation - in terms of base and bonus component at my level?
Thanks!
lol....you don't get to negotiate yet. You are essentially asking us "how do i trade?" This means you are not yet at the level where you are in a position to negotiate. You negotiate AFTER you have a track record. The 5mm is just a chance for you to start creating a track record. Your bonus will be discretionary. If you do well, and get the next 20mm...and continue to do well, they willpay you well. And at that point, THEN you'll be in a positi to negotiate IF you peform well.
Welcome to the life of a trader. That's what you are now. Live and Die by your PnL.
I suggest you go learn the basics of technical analysis...to help you figure out when to buy, and when to sell. This is on top of your fundamental analysis.
Perhaps I should have prefaced these points with a bit more context. For the first question - I'm looking for personal habits. I've contributed research and helped to guide the portfolio at my current and previous fund, but what happened when you gained full autonomy and how did you learn from this? Specifically the biggest changes you noticed in your mindset?
Second, we are going to speak in a couple weeks to negotiate a comp plan, I'd like to know what to bring to the table. It's an incredibly casual environment so no pressure here - this is a new fund and the family doesn't have an investment background.
Thanks again!
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