New account for this one. Curious how many credits / investments you cover, ie currently invested in? What is a normal range per analyst. How does it differ per strategy? Distressed/HY/Leverage Loan/CLO/IG/equities? Also does it differ based on industry analyst vs generalist?
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Differs tremendously by strategy
Yes, of course. That is why I was asking about different strategies to establish ranges of normality.
For example, what are some strategies you have insight into and what are the averages?
Look, it's not like I've taken a survey of everyone else in the industry
I am at a medium sized long only AM (~ 20 bln credit AUM), and I cover ~ 20-30 HY credits and ~ 30-40 IG credits across energy/power in our funds....some are higher maintenance then others...
I am an IG analyst (only HY we hold are fallen angels) with ~$22b AUM and I cover >80 credits over capital goods, transportation, etc. yes, we are understaffed.
Varies tremendously even within strategies.
Some deep research fundamental equities shops will have each analyst covering 4-6 ideas at a time, while some more relative value/ trading style funds will have analysts that are nearly continually invested in 30 - 50 names.
Distressed credit fund. Each analyst has probably ten or so actual positions but dozens more names that they've done all the work on and are just waiting for pricing to come in line.
Helpful stuff guys. I'm at a distressed credit fund with 5-10 names in the portfolio + 2-3x more that are being followed / work is done. Also, 30+ LL in a CLO while having done work on 1-2x of those. Just trying to base line our staffing.
Sounds like you need to hire more analysts.
Let me suggest my services. I believe that my 294 banana count warrants at least an interview ;-)
Seriously though, I actively cover about 50 credits across HY and IG- probably 75-100 names are on my watch list (which is way too much)
Would if I could. This is leading me to believe that everyone is understaffed.
Im throwing my hat in the ring here, but as mentioned previously, this depends on strategy. I have 25-30 positions + a handful of ideas (ideas are taking a backseat in this market though).
I am also curious to those who cover 50+ names, how much work do you do on each? Is this more of a qualitative understanding or are you modelling / going in the weeds on every name?
I am only asking because my team is a sweatshop and given the amount of work I do on each name and the amount time I spend in front of a computer, I would not know what to do with myself with 3x the companies.
On average, how much exposure do all of you have per credit?
Currently:
3 distressed, 1equity, 40+ CLO loans
Traditional distressed shop, but recently started doing the CLO thing.
FYI, we dont maintain models for our credits. All back of the envelope & understanding unit economics.
We do have waterfalls for them, though. Not updated unless cap structure changes
Similar boat. I build out waterfalls + cash flow models to understand sensitivities for most of my stuff but I do not build and maintain full three statement models. I trade my stuff too so really do not have the time/desire to build out a full model on a name when I can get 80% of the value from 20% of work by doing back of the envelope type work. Of course, the more hair the more modelling is required but I focus most of my time on the BB - B rated universe.
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