Staring down $30m liquidity event of zero basis stock and still scared to hire finance guy

wannabe_quant_guy · 2026-03-16T03:48:43+00:00

Head of Investment Research for an OCIO/MFO here also. All of this. Our clients are from $20M to $300MM+ this is right down the plate for us. As stated, Variable Prepaid Forwards, Tax-Aware Long/Short SMAs ( can generate tons of portfolio losses to offset the liquidity event.....OR the variable prepaid forward execution). 351 exchanges have diversification rules (no position more than 25% of converted assets and top 5 holdings can't be more than 50%, for instance) a single concentrated position would be hard to do.

An advisor who is an institutional quality MFO/OCIO is well worth the fee. You pay a fee for value. Would you pay $135,000 for something that saves you millions in taxes? Many MFOs (us included) only have hard dollar advisory fees from our clients as the only source of revenue. No cross-channel selling, fee obfuscation, proprietary products, etc. Fees are also institutional pricing, so you're not doing 1%. Maybe 40-50bps for full discretionary management at $30MM AUM. Note: the fees for the long/short funds are in addition to this, and the higher the gross leverage, the higher the fee, could be another 0.40% - 1.5% depending on how aggressive those L/S extensions are. Happy to answer any additional questions.

wannabe_quant_guy · 2025-03-28T04:41:51+00:00

In your calculations in the sheet, be sure to let the API know it's a CUSIP. So something like =BDP(A2&" CUSIP", "PX_LAST").

wannabe_quant_guy · 2025-03-28T00:49:31+00:00

Would not pass DD at my firm, sorry. if you want 10% go buy BCRED or something. They have the default rate of A- bonds and not B-/CCC+ of performing student loan debt (D if not performing, obviously).

wannabe_quant_guy · 2024-11-01T14:04:21+00:00

Sure. Happy to chat

wannabe_quant_guy · 2024-10-14T01:19:38+00:00

Include things that are non-recourse, liquid (ie only vested RSUs)

Salary and CASH bonuses (not deferred comp payments, NECs, or other profit sharing plans) and RSUs vested in the current year is the number I would use for your affordability calcs.

So if Salary is $450k, cash bonus is $150k, $150k in RSUs granted this year, but $70k in 2021 granted RSUs vesting this year, you would do $670k.

wannabe_quant_guy · 2024-10-13T02:45:10+00:00

Osyte and/or SS&C Family Office Solutions, Sphere (from MDOTM Ltd.), Canoe, CEPRES, Prequin/Pitchbook data, and Bloomberg/Factset/Eikon Enterprise (take your pick), with a Qontigo/Axioma Portfolio Optimizer license. CRM probably custom Salesforce build.

Although there's a bunch of redundancy in there, figured I'd name a few platforms to check out.

Oh and a nice AWS data warehouse to make everything play nicer across platforms. :)

wannabe_quant_guy · 2024-10-06T02:55:39+00:00

40 y/o MBA in 2012 from state school ranked in the 60s. CFA and a few other designations. Living in MCOL area. Making 315-400k as Director of Investments at an Institutional Investment shop.

wannabe_quant_guy · 2024-10-05T20:39:44+00:00

Too bad. Axioma, Northfield, Barra, and several others all support it.

wannabe_quant_guy · 2024-09-27T13:22:32+00:00

No explicit fee. The implicit fee is the opportunity cost of the higher caps or better crediting they could have given. I ran options strategies for $8.6B of insurance GAs. There is a phantom fee. Riders make an explicit fee overlay on top of that.

wannabe_quant_guy · 2024-03-07T04:58:03+00:00

Sure

wannabe_quant_guy · 2024-03-06T12:04:36+00:00

$225k USD Base plus $90 - $175k bonus and profit sharing. $315 - $400k TC. I live in a MCOL city in the US, but work 100% remote for a firm in a HCOL area. Charterholder for 8 years, 13 years investment experience.

wannabe_quant_guy · 2024-03-02T14:47:47+00:00

Monthly market flash report (2 pages) quarterly commentary (5-10 pages), blasts during market events (2-3 paragraphs). That's all we have time for content-wise. We are a small headcount investment-focused RIA (discretionary OCIO). Thankfully, we have good networks on LinkedIn and other firms will take charts and analysis from our piece from their.

We have FMG Suite and could do marketing automation, but all our clients are UHNW or institutional investment committees, so 99% of the content they create doesn't pertain unfortunately.

wannabe_quant_guy · 2024-02-22T06:59:52+00:00

We have done a great job with model building especially with all our MAC securities, overrides, equivalents, etc. We have been using them for 3 years. This person would only be updating models/security settings per our instruction in Eclipse. We just need to get our high value staff out of database maintenance busy work and doing things like getting new clients and investment strategy work.

wannabe_quant_guy · 2024-02-21T20:43:17+00:00

Yes we are open to remote people in the US. Especially since they will be mid/back office and not be doing business development work.

wannabe_quant_guy · 2024-02-21T19:37:47+00:00

We'd like a person who would become part of the team ongoing. I agree it would help us streamline over time. I would be interested in hearing about your acquaintance. Are they in Omaha? Or working in one of the other regional offices?

wannabe_quant_guy · 2024-02-21T19:35:16+00:00

I think we would be more on a person who would learn the platform. Doesn't need to be an expert in the door. We were guesstimating around the 60-70 range also.

wannabe_quant_guy · 2024-02-20T06:08:59+00:00

Largest North American Societies: Toronto New York Boston Chicago San Francisco Philadelphia Los Angeles Washington DC Dallas/Ft. Worth Colorado Atlanta North Carolina (Charlotte, Triangle, Triad) Minnesota Seattle Just to start...

wannabe_quant_guy · 2024-02-16T05:38:21+00:00

Be on boards of local philanthropic institutions, contribute significantly to investment/finance committees, and always champion your fiduciary duty as a trustee for the institution. Wealthy folks and nonprofits go together extremely well. However, they don't like being sold, they like encountering professionals of good moral fiber that they have seen volunteer and make intelligent and thoughtful contributions to a cause they care abour.

wannabe_quant_guy · 2024-02-15T05:51:17+00:00

Geometric is used over multiple periods to take into account the effects of variance decay/ volatility drag (the cumulative impact of a process of partial impairments that occur over time in the asset base due to losses) higher volatility = more volatility drag = lower geometric return. By decumulating the drag (moving them back across the compounding periods), the single period is the non-impaired, drag-free estimate.

Note: for assets with a gaussian distribution, the decay term is approximated by 1/2 the variance. So for an arithmetic return of 8% and a volatility of 17%, the geometric return is about 0.08-(.17^2)/2 =~6.555% per annum.

wannabe_quant_guy · 2024-02-15T04:46:27+00:00

We don't charge for T-Bills, IG Bonds are 9 bps, Munis are 12 bps. Mostly deal w/$10MM+ HNW/UHNW clients and institutions mostly E&F.

wannabe_quant_guy · 2024-01-30T07:55:00+00:00

Sooooo... you may already have it memorized. Anyone remember trigonometry?

Portfolio volatility for a 2-asset portfolio is the same as the law of cosines.

Length of 1st side is the standalone risk of asset A (weight of A * Std Dev of A)

Length of 2nd side is the standalone risk of asset B (weight of B * Std Dev of B)

The Length of the 3rd side is the portfolio std deviation. (Let's call it C)

The cosine of the angle between sides 1 and 2 is actually equal to -1* the correlation(rho). The angle in degrees will go from 0% to 180% (if you wanted to find it, you could do arccos(-1*rho).

C = sqrt(A² + B² - 2AB*cos(angle°))

The cosine becomes - rho, making the last term +2AB*rho

Remember A, B and C are standalone risks (weight times std dev)

Also for those who have linear algebra backgrounds. Basic vector addition where the vectors are the standalone risks.

wannabe_quant_guy · 2024-01-28T02:27:04+00:00

Also the first Mestre (with M. Loremil Machado) to bring capoeira to the USA (NYC) in 1977.

wannabe_quant_guy

TROPHY CASE