Who works at activist hedge funds?
What is the "typical" background of somebody who is hired at an entry level at an activist hedge fund? (e.g. Pershing Square, Icahn)
My guess would be two years at a top group in investment banking, but I have no data. Do certain banking groups (e.g. restructuring) place especially well into this category relative to how those banking groups place into more traditional PE investing? How does the skill set differ?
I understand that there are very few opportunities in this space; just wondering out of intellectual curiosity.
I'll never understand why everyone wants to know all about Pershing.
My guess would be that people are attracted to Ackman's very public personality.
Ackman takes many analysts from BX and GS. He mentions this in a speech he gave in london, another interview he had, in the book about MBIA (confidence game), and you can see this via linkedin.
Many to most come from a transactional background such as private equity, distressed credit, etc. Obviously most of those folks also go through investment banking.
Pershing has odd hiring habits, as has been well documented. However i know plenty of people at Icahn, 3p, trian, and others, and the majority of them are former PE guys.
Former PE skills translate well.
Third Point takes a lot from M&A, Relational breeds a lot of undergrads in-house, Trian's bios are on their website, and ValueAct takes a lot from PE (from what I've seen).
Plenty of M&A guys with semi-advanced legalese understanding. Most of these guys are paid to think / comb legal documents - its not that exciting
How to break into active hedgefunds (Originally Posted: 12/11/2009)
I am still in college and I am extremely interested in the distressed investing and active approach that some of the larger hedge funds have taken. The fact that they then gain control of the company and make executive decisions combines all aspects of business and is intriguing. Where can I start? I have wall street experience but I would like to start focusing on a path that would allow for a career in this industry.
Thanks in advance.
Well first off..you need to clarify what you mean by active hedge funds...Distressed and special situation investing can mean a lot of things..purchasing securities to gain control, to make a return, etc...Not too many hedge funds purchase the fulcrom security with the hopes of gaining control, that is reserved more private equity groups. With that being said there are a number of firms out there who do both Apollo, Oaktree, Mt. Kellett, etc.
I do not think this is the case, but you are not referring to activist hedge funds are you? That take a position and push for change through board seats, proxy fights, etc.
A lot of the special situations guys at the junior level come out of restructuring or leveraged finance backgrounds...a lot of the senior guys are lawyers by trade
I guess I was talking about activist hedge funds...thank you for the clarification
I am also interested in paths to a career in Activist Hedge Fund investing. I am in consulting now, after a few years in auditing. Any help is greatly appreciated. Whether it be for someone coming out of school or with a few years experience.
Thanks.
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