Basic Question

I know this is something I should know but I’m a freshman so please bear with me. I am not a HF expert by any means but I’m trying to learn and I didn’t find my answers in my searches. This is a question about a SkyBridge Capital type of firm. From what I understand they are a seeding and HF advisory firm. So please fill in the blanks and correct me please. So they will help develop the funds in return for a piece of ownership. Also when it comes to seeding they will take someone’s money and tell them what funds to put it in? Thank you for dealing with my stupidly and thanks for the help!

 

Basically, Skybridge collects money from a group of investors, and then invests it in a diversified portfolio of hedge funds. This is a pretty common strategy, and generally a firm that does it is called a "fund of funds".

What Skybridge and other "seeding funds" do differently is seek out new/emerging managers and negotiate a deal where they get a % of equity in the management company (the entity that receives the management and incentive fees from the hedge fund) in return for their investment. Skybridge then benefits from both the performance of its investment in the fund itself AND the potential growth/success of the fund overall.

Their other service lines, things like managed accounts and "hedge fund advisory," are essentially variations of the above.

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 
Best Response

Cumque et illo quidem at rerum et aliquid ea. Ipsam ea ut odio veniam. Officia dolor amet sapiente error.

Too late for second-guessing Too late to go back to sleep.

Career Advancement Opportunities

March 2024 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Magnetar Capital 96.8%
  • Citadel Investment Group 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

March 2024 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Citadel Investment Group 94.6%

Professional Growth Opportunities

March 2024 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 97.9%
  • D.E. Shaw 96.9%
  • Citadel Investment Group 95.8%
  • Magnetar Capital 94.8%

Total Avg Compensation

March 2024 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (23) $474
  • Director/MD (12) $423
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (71) $274
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (225) $179
  • Intern/Summer Associate (22) $131
  • Junior Trader (5) $102
  • Intern/Summer Analyst (249) $85
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”