Someone today told me that I should consider the HF career path after business school. I am about to go to an UMM/MF, then business school.
Can anyone suggest some reading here. I had not seriously considered this career. What types of HF roles do people going from LBO PE enter? Fundamental? Activist? What should I be thinking about?
I'm looking for any broad strokes advice... best posts on WSO, firms to read about, different strategies, examples of people on LinkedIn to look at, etc. Thanks.
Would kindly appreciate information on the transition from PE --> HF. Thanks.
that pedigree would be most suited for long term oriented SM funds. Lots of folks at Tiger Cubs have that background
Thanks, this is helpful. Can you clarify - what is SM? Small-medium?
Single manager. Means a single pool of capital under one manager vs a multi manager like citadel where there are multiple pods/teams with their own designated amounts of money to manage.
Single manager - means that there is 1 PM, not 200 like Citadel. Pershing square, tiger cubs (maverick, tiger, coatue, etc), etc usually hire out of MF PE associate classes. You could also go to a startup. I know someone who went from Carlyle and started her own business so the range of opportunities are endless.
Yeah and to this I would say, only make the switch to HF if you have conviction. The space is more meritocratic than others, and oftentimes smart people on paper are bad investors. Be sure you have the temperament for the public markets and can actually generate ideas. People coming out of PE may be better at this, but average person from IB probably ill suited. lots of folks out of ugrad without an idea of where they're headed.
I'd do more diligence on the funds, strategies, philosophies, etc. and make sure you are the right fit for public markets
I'm not sure that I am. I am trying hard to figure this out. In fact I have a pretty poor stomach and low level of emotional control when it comes to fluctuations in the market. Most of my success in public investing has been in concentrated growth bets that never dipped. HFs that take concentrated long term bets (PE approach to public markets) are really the only ones that conceptually feel comfortable to be.
Sometimes I wonder if it just makes sense to flip through the CIMs sent to me, look for my low teens IRR, go 2x on a big fund, and be happy with some operational value add given my consulting background (read: busy meddling). But I also hear about different appeals of public marktes and so I am trying to learn more and am currently reading a book called More Money than God.
I'll be honest....it sounds like public markets are a bad fit for your personality. I don't think that you will enjoy it, because you dislike volatility as much as you do (if it makes your stomach churn, imagine that feeling every day for the rest of your career...and, no, it's not something that ever goes away). More importantly, the people who are great a public markets are the ones who have a genuine passion for it.
Ratione mollitia libero molestias enim. Non sed sit aperiam illum.
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