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Would be great to hear experiences from anyone who previously worked at a IB and then worked at a Hedge Fund. Until a hedge funds gets established I consider this as a risky move.

You are right - this is can be a risky move. Especially until the fund gets established.However, there are upsides, the main one being that you really can see the impact of your work on the development of the company, as opposed to being a small cog in a gigantic machine. I have found the working atmosphere more relaxed and fun, whilist still maintaining a very competitive edge.Other downsides include, you will lose a lot of support that you may be used to at a bank and have to get involved in many other things (IT support, client meetings, data collection etc). I made the move five years ago to what was then a small fund and do not regret it all. Good fun, excellent upside, but there are risks attached to it.

Thanks DenyDo you get a higher pay as compensation for the additional risk ?

QuoteOriginally posted by: deyYou are right - this is can be a risky move. Especially until the fund gets established.Riskier than being in academia? I think it depends on the type of work you are going to be asked to do. Even at a shaky fund, it could be a chance to build your resume, get practice doing something you're not quite qualified to do, or do some research you've been interested in doing anyway.Plus, as I've said before, seeing a fund fail from the inside can be a useful experience. Especially since most funds are raised by people doing something that made money at some point. Watching an approach stop working, or watching a great strategy go to waste because of poor management, will help you develop your own investment approach and management philosophy.You only have one reputation. Best to learn by watching other people ruin theirs, so you get it right the first time when your own name is on the line.

I agree that academia has a lot of risk attached to it. My point relates to that joining a small unestablished hedge fund does have a risk attached to it. Even if you have names with a great background in other houses, running a business is a whole new challenge. As for what you can learn from seeing a fund fail, I agree that often the best way to learn is by seeing things go wrong. As long as you learn from the mistakes.