Choosing between Multi Manager Hedge Funds vs Growth Equity
If you had the chance would you go to growth equity (500M-1B AUM) instead of HF (Citadel, P72, etc)? Seems like you could also go from Growth Equity in tech to HF, but difficult to go from HF to Growth Equity. Are the skills you learn in Growth Equity helpful for investing in public markets as well? Trying to compare and contrast. I really like public markets but also think investing the private markets helps you look at a company from a different/longer term lense (3-7 yrs, IPO exit or even hold for a few yrs in public market), so could go to a single manager or long only? Downside would be if move to HF later would still start at the analyst level and have to grind several yrs for a potential PM spot.
Appreciate your thoughts.
Bump
Take this with a grain of salt as i don’t know much but talked to a HF analyst say they have to retrain PE guys.
if you unpack that, it means they’ll take you but don’t think they give that much credit to your skill set.
but again - no clue personally! Just a PE associate myself
There's another thread discussing the more dismal aspects of entering LS as a junior analyst. I'd suggest you read that. Bluntly, pod shop teams are volatile and it is hard to know how long you/your PM will last.
I personally know of someone who did banking for ~2 years, joined a pod and is now out of a job w/ 3 months of HF experience. That doesn't happen in the growth equity world.
The safer/tried route would be to go to growth/PE and if you're still interested in HF, go for it after 2 years. If you go to pod shop now, the SM/LOs will be hard to transition to while growth/PE will be impossible to transition to. Also, you mentioned having to grind for several years before becoming a PM. It just isn't formulaic where you can become a PM after X years as analyst. It requires a coordination of skill and luck. There are many more senior analysts than PM seats available.
this definitely happens but many of the MMs try to place you on another team. But if you’re young that could mean 6 months in HC, then industrials, then TMT and then back to HC. And so you work 2 years but no one is there to teach for you (or pay you) and so you end up spending two years at firm X and aren’t that much better than when you arrived.
that’s not the normal path necessarily. But it can happen.
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