Learning Curve: Ramping a New Seat
I had someone send me a question asking for advice for a brand-new analyst working at a pod shop. Noodled on it, and figured I would share the thoughts broadly in case it is helpful.
I am far from the most tenured and successful pod PM - I spent 4 years as a PM at a combo of D.E. Shaw (not a pod) Citadel/Aptigon and Schonfeld, over which time I hired/employed/trained a dozen or so analysts. (And then threw up two middle fingers and retired…more on that later).
So I’m, by no means, the absolute authority on pods. However, here is my advice:
Your job is to make your PM’s life easier.
Full stop. Don’t forget this. Run through walls for your PM. Let the PM know this. Don’t whine and complain about your “career development” or comp in your first two years. Don’t do it. That era will come. Be a ride or die, and let the PM know it.
Use your “golden three months”.
Life happens fast at pods. It has to - it’s sink or swim. However, you CAN be the naive newbie for 3 months. So ask questions!! Create a running list, ask your PM for 10 minutes a week, and ask anything you don’t understand. Don’t pretend like you do!!!
Use more senior analysts on the team as a resource. But you have 3 months. By month 6 the naive newbie schtick will be old, and you will be expected to contribute. Sell-side teach-in calls can be helpful. Be a sponge. Be a sponge. Be a sponge.
Learn to communicate.
Seasoned pod players have a distinct communication style. Terse. Direct. No BS. Tell me what I need to know and no more. They don’t have time to waste on 15-minute convos about your weekend. This isn’t I-banking. Mimic how Sr analysts speak to PM.
Zero defect mentality.
This isn’t I-banking where you send a deck to an associate, get 56 markups, and turn the deck 6 more times. Don’t send anything to PM until it has been 5x checked and perfect. The fastest way to ruin a reputation is to send sloppy work.
Study compliance procedures very carefully.
Contrary to some beliefs, pod PMs are insanely careful about MNPI and don’t want to touch gray areas. Personal trading, consultant calls and mgmt meetings are focus areas. Make sure you don’t feel fault here. If you make a mistake that gets the firm involved it will be very bad for you. You are easy to fire. Compliance and the GC are your friends and use them proactively (don’t assume you know the answer). Even if you can own individual stocks I would just own indexes first few years.
Become the “techie, data guy”.
Learn all the risk model UI, excel pulls, Bloomberg bells and whistles, etc. There is a lot of this and PMs are older and less tech savvy. Become friends with the data science team and become your team’s internal data guy. Add value like this.
FILO. First in, last out.
Shouldn’t have to say this, but I do. It matters. Don’t take vacation your first year. Sounds harsh, but your first 12 months isn’t a career, it’s a tryout. Treat it that way.
Find your voice.
You don’t want to be the arrogant know-it-all, but you don’t want to be the person who can’t take a stand. Observe, listen more than you speak, and contemplate, but when you have an opinion you must voice it. Use data, analogs, and facts to support, not your opinion.
Be a culture carrier.
Make it about your team, not yourself. Be even-keeled in drawdowns. Be yourself, tell jokes, and do your best to be likable. Obsessively identify ways to be helpful. Be a fixture at team happy hours, etc
Know the game you chose, and embrace it.
Pod life is fundamentally impermanent. You could make a million+ a year by year 3 or be fired in 3 months. You cannot be too attached to either outcome or you will drive yourself mad. Embrace the uncertainty. Some teams/seats last for years. But the pod GPs are fundamentally PM traders who cut losers and let winners run. Given the leverage, it can’t be any other way. So ride the ride - highs will be euphoric and lows will be depressive. Thats life. In 3-5 years, you will have battle scars and tons of lessons learned (keep a trading journal), and if you do it right, you will become a total badass money maker. But it’s a journey, and you won’t be there on day 1.
Best luck!