Odd Lots How You Get and Actually Keep a Job at a Multi-Strat Hedge Fund
How Multi-Strat Hedge Funds Hire and Keep Their Star Traders
Brian Yelvington explains that getting and keeping a PM seat at a multi-strat hedge fund is like running your own business with one client: the fund itself. Past performance is just one part of evaluation, but defining your trading "edge" clearly in two or three sentences during interviews is critical — it shows deep understanding and experience.
Drawdowns are closely monitored internally, often on peak-to-trough basis, and a PM can be fired even while being profitable if they give back too much money after gains. Job security depends heavily on managing drawdowns, adhering to risk limits, and keeping the client's satisfaction.
While analysts focus on idea generation and specialized research, PMs must demonstrate strong risk management and portfolio construction processes to survive the high-stakes environment. The multi-strat model thrives on hiring independent thinkers who don't blindly copy each other's trades but contribute unique, uncorrelated ideas.
Get Hired by Being Useful
- To get a first job on a multi-strat pod, be useful and understand your specific market area well.
- Develop concrete knowledge about historical policy effects or industry-specific insights rather than hoping for instant big trades.
Multi-Strats Manage PMs Like Portfolio
- Multi-strat funds act like a portfolio of risk takers, optimizing the mix to maximize returns.
- PMs can be fired despite profits if their risk profile is redundant or they exceed drawdown limits.
