Would you rather join a Tiger Cub or MM HF out of business school?

Hi guys, for someone who has worked in neither before, who is going to business school to recruit for hedge fund roles, I am wondering which type of hedge fund would be a better career move (if given the choice of course).

Based on my research, a Tiger Cub role is generally harder to get into and has less career volatility, while a MM HF role has high turnover but significantly better career progression to PM given good performance.

Perhaps joining a Tiger Cub first then jumping to a PM role at a MM HF if the opportunity comes is the best risk-adjusted move? But I wonder if it may be harder by that point to reconcile the Tiger Cub style of investing with the quarterly earnings style that you need to be successful at a MM HF.

What do you guys think for someone coming out of business school?

 

This is true but given number of fresh MBA grads wanting to move into HF world and number of seats available, a lot end up at MM

So yes, MM doesn’t care about MBA but OP is asking which is better

To OP - There are lots of threads on this site about the differences. Hard to really recommend one path over the other without knowing more about you

 
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The best seats with top PM at citadel and P72 are comparable with most SM (unless you want to be an activist). The problem is, however, that unless you have industry experience and know the seat your interviewing for you have no idea what your MM experience will me like. 

I was recruiting for SM when I got a MM offer working for a former tiger cub partner. I absolutely love it but it all comes down to the PM. Working at citadel means next to nothing. 

 

job security appears to be a top topic in MM conversations. How would people feel about an offer to join Holocene / ExodusPoint or any of the more recent startups given that they are still expanding so the chance to get fired may be smaller??

 

I disagree with this. Lots of MM guys make it to PM quicker and run their own funds quicker and LP demand for strong MM talent is high.

I think a lot of people focus on the high turnover at MM shops but are the numbers too different on a % basis? For some reason, I’d be doubtful. There is still high turnover at some tiger cubs, just a smaller number of absolute seats.

 

Outside of Coatue with its sunshine and rainbows culture, who has high turnover?

MMs will give analysts from prestigious Cubs books all the time. Their own analysts have a tougher time seemingly - really need a PM to leave or you to get a carveout.

Upside/downside: MM guy gets paid same as cub or slightly better in a good year and no job in a bad year. Tiger guy can still clear 400 in year with negative returns if fund has scale.

Unless you’re getting a carveout or the PM is Jack Woodruff or the next Plotkin and you love shitty culture...go for the tiger.

And you can always go from tiger cub to MM, much tougher to go the other way around.

I’ve worked at a MM and know several others who do. I can’t think of anyone who would take MM over Tiger - I’m sure the equation changes at PM level. But there are few and far PMs who will have a constant seat for more than a few years.

 

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