SM Career Trajectory
Hey guys, incoming IB intern here so forgive my naivety please. End goal is to be at a SM after 2 years of IB to learn as much as i can at a broad level and get reps and then 2 years of PE at a generalist shop to learn to dive deep across different industries. I’m not too interested in (read: scared of) working at one of the MM platforms given the risk parameters and because I like thematic investing/taking a top down view and isolating strong businesses that align with key themes as opposed to the bottom up analysis covering 15-20 names (I know some pods are more relaxed but still). It seems like the SM model is bleeding right now, but I’m of the belief that this is just part of the cycle and will fix itself over time.
All that’s to say, I was wondering how you move from a SM analyst role into a position where you are directly taking risk. Obviously becoming the CIO/successor is highly unlikely/impossible, so how does one move into a risk taking role at a SM outside of being seeded by your PM and launching your own fund? What is the planned career trajectory for you SM analysts? Would love to hear anything either anecdotal or empirical! Thanks in advance!
Some SMs have a model where analysts / sub PMs can take risk. But if you want to take risk, one of the MMs or SM/MM hybrid funds is likely where you want to be in the end.
No they don’t - the hybrid ones are gimics. When the hybrid ones say “Oh you’ll get a book!!!!” it’s always a lie
Pod bois come get this thread
I work at a single manager but please do note…tight risk limits are not a risk a junior person at a multi-manager. It’s the same work. And if you’re worried about risk this isn’t the right career for you, I would consider AM / LO or be a sellside analyst.
I don’t think any fund has a top-down / thematic / therefore factor-driven approach anymore, that was a 2010s theme not today. Everyone is bottoms-up anyway - like I said, regardless of SM vs MM, you’re still covering 20-40 names in-depth bottoms up. That model of thematic / top-down / finger in the air / TAM / 2035 margin story is no longer a thing. I also wouldn’t say it’s a part of the cycle, much of this is structural. Might want to do some reflecting
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