My relative has been offered a position and I want to get more info to see if it’s legit.
A school advisor connected him with former employees of large international bank, who started their own hedge fund. My relative is a grad school student with no investment experience, aside from his personal accounts and a few college classes. In school, he focused on medicine and healthcare, which aligns with the hedge fund managers' strategy. The potential employers want him to post his own capital before beginning work. They have hired interns previously, who worked without compensation and didn’t need to invest personal funds.
The whole thing sets me on edge, since it could be seen as receiving a position in exchange for investing personal funds. I imagine his potential employers walking away with his money, and leaving him no recourse to recover or even complain. After all, they already informed him of its high risk. It wouldn’t even need to be a scam, and he could end up losing part of his savings.
On the other hand, I don’t want to dissuade him from a potentially rewarding or at least exciting career move. This might just be their way of testing his dedication. I have no way of decreasing the uncertainty of this decision, and want to offer the best advice to my relative. I would appreciate any further perspectives about this crossroad. Thanks!