Attrition

It's no secret that investment banks have ridiculously high attrition. Apparently this hits some new folks pretty hard, as I've seen a fair bit of fright and sadness in the new guys from time to time. It's simply something with which you learn to deal. I've had my fair share of friends and mentors move on to other places both on their own accord and not. It can be a sad occasion or a joyous occasion, but there's not doubt that the people you know at the bank constantly shift. The "go-to" guy one moment could quickly become non-existent. You learn to deal with this shifts both personally and professionally.

Personally, I don' t think I can help much. Everyone deals with their friends leaving their firm in a different way. I had one kid crying one day when a big downsizing was announced for a bunch of people he knew. Life goes on, people find jobs in or outside the industry. It happens all the time in this industry, so you'll shed a lot of tears (in fact at around the same time every year) if you don't get used to it. A boss of mine once lamented that all the traders he used to know were gone although the salespeople always seem to be around. It's even worse on the i-banking side, as I know precious few people who stuck around longer than a few years.

Professionally, I recommend you seek out multiple sources for all your help and information. Sure it's convenient to always go to the same guy, but what happens when that guy is gone? Suddenly you're a fish out of water. If you're going to a tech guy all the time, get to know his co-workers and consult with them from time to time too. If you always talk to one trader for market color, try talking to others on his desk from time to time. Same goes for brokers, salespeople, operations, etc. It's always good to have someone else you can go to (helps when your guy is on vacation too).

Turnover at hedge funds (other than Citadel) is apparently not as high as an investment bank, which surprised me. Then again, most hedge funds consist of some 20 guys in a room, so it's more like a tight knit family. Large institutions bent on making money will always churn their staff for cheaper alternatives. Experience is useful, but only for certain jobs (and if someone cheaper and better comes along, then so long).

You learn to deal with the turnover on the job, and you learn to defend yourself from turnover too. Most banks are pretty good about allowing all but the most senior and most junior people to look around for another position. The same can not be said for hedge funds. It's good to be in contact with a good headhunter at all times for good measure as well. These people will help you find a job, and if you're more senior they will help you hire for new positions as well (an often underestimated task to the inexperienced). It's also important to gain marketable skills. A good market maker can always find a job at a bank. A good salesperson will always have his contacts and thus find a job. A bad prop guy will never find another job (one of the dangers of going to a prop desk or a hedge fund too early is that you don't have that market making skill to fall back on if you fail as a position trader).

Keep your options in mind and proceed carefully, but if you work hard (and your friends work hard) you should be alright.