I got a job offer!

I got a job offer finally!

Actually, it’s an internship (3months) but they want to convert it into full-time (of course i will have to perform exceptionally).

I am also waiting response from two other places (both for full-time roles).

Thank you guys for advice!

Random question: how do i find AUM of some fund, besides on the fund’s website? Can I find it on Bloomberg or something?

Image result for celebration girls gif

For a 40 Act mutual fund? The company’s website should be the most reliable. We have to keep that accurate or face the wrath of a few different regulatory agencies. But, if you really don’t want to use the company’s site for whatever reason, Morningstar is okay (I actually think they kind of suck but their info is free and easy to find).

If it’s not a 40 Act fund, that becomes a bit tougher. What do you have access to? Evestment, Morningstar Direct, etc…Those should be able to help you out.

Edit: Oh, and congrats on the job!

Congrats. Check Morningstar if it is a mutual fund. Pretty straight forward.

Otherwise you can check their SEC filings on the SEC website. They have to give a general idea of how much in each fund, unless they are tiny I believe.

It’s a fund of hedge funds.

It’s a fund of hedge funds.

I would rely on the fund’s website disclosures more than a 3rd party.

You can go on to FINRA Broker Check.

All managers - money managers from mutual funds to hedge funds to fund of funds - must file FORM ADV annually…There you will be able to see what type of fund it is and its pay structure and even the pay percentages for mgmt and incentive fees along with ownership and C level executives. Part 2 of ADV has more details about the people there (only the front office folks and top dogs of ops dept).

Although the AUM number is RAUM which means it is including leverage…

Congrats on your offer. The key is to do what you were asked to do on time and don’t be afraid to to have a quick chat to go over and ask questions before the expected deadline. Also, happy hours are a must and be yourself.

Congrats dude, models and bottles in no time.

What is the job?

Since it’s a FoHF, I’m gonna venture a guess as an entry level analyst position - compile exposures monthly on the portfolio of funds, prepare data on prospective funds, etc. Eventually leading to HF due diligence. Which IMO is something you should GTFO of as soon as you have some designations or a better offer or both.

However, it’s definitely not a terrible place to start in this profession. Get to see how full of sh*t the HF industry is first hand.

Why do you think you should GRFO as soon as possible? People in that firm have been there for a long time (average more than 5 or 10 years).

It’s a cushy gib but hard to get out if you are looking to do anything related to fundamental research at a fund.

I am not really interested in fundamental research. I want to do something quantitative

Because FoHF are under a lot of pressure lately. HF themselves are under pressure as their high fees and lackluster returns over the last 10 years have made many investors sour. FoHF are just another layer of fees on top of it all. If working for institutional investors I would find it very hard to justify allocating to HF’s in general and extremely hard to justify investing in FoHF.

If you want to do something quantitative I would think working for a quant HF or other quant strategy would be choice. Rather than just allocating to strategies. I dunno, maybe this is a FoHF that ony deals with quant managers and there are a lot of derivative exposures and stats crap they need done constantly. Right up your alley. People may have been there for 5-10 years because they are ok with making an ok salary and other job opportunities seem to get smaller the older you get, so they figure just stay the course.

But if you’re like a lot of people here, you may eventually realize the meat (and big money) of this profession is picking actual securities, not picking managers. I was kind of in your shoes and eventually wanted to GTFO (get the F out) of manager selection/asset allocation and into security selection when I got my charter.

Just about every large “traditional” asset manager has positions for quants. Even if they’re a purely fundamental shop they generally have some quant guys running factor exposure risk assessments and whatnot.

I mean, this is the only offer I got… I have to take it, right?

This is painting with a very broad brush. You have no idea what firm this is. Also, “meat (and big money)” is absolutely not in actually picking securities exclusively. That is a very narrow view of the industry and is irresponsible and likely bad advice for someone just starting out.

OP, just get in the job, work HARD, be disciplined and show initiative in a way that makes people like you. You will figure out if you want to be there long term. What are your credentials (B.S., Masters, PHD, area of study)? That will determine if you have a shot at a quant HF.

We are not saying you should not take it, just giving you some heads up going in as most people who work at FoFs would probably rather work at a fund picking individual securities. Always good to have exit strategies especially most of the “quant” picking are done through screening tools anybody can use without quant background unless you have programming skills to implement the back-end processes.

Yes, take the job. Have to start somewhere. Obviously focus on your job and do the best you can.

In the meantime, I’d get your charter, learn to program, backtest some strategies, etc. Then look for outs after a bit. Unless you just love compiling exposures for FoHF, in which case you are set for life.