Boutique LO (RCG/D&C)
Wondering what the compensation progression looks like a the boutique LO (Ruane Cunniff Goldfarb, Dodge and Cox)? Anyone have insight into the pros/cons vs. L/S equity seats (MM or SM)?
Thanks!
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No idea on comp, assume pretty standard pre-MBA.
D&C / RCG is very different from philosophy and culture perspectives vs. an MM L/S.
RCG is nearly impossible to get into, the last time they hired someone was that Wharton undergraduate kid who won the Ira Sohn conference a few years ago (who pitched eBay as a split off, which later transpired thanks to Elliott Management). RCG is very very good. Their annual investor day transcript is super educational. Look at the bios of their analysts - pretty all Ivy League or H/S/W for MBA.
D&C has its target schools (west coast probably Stanford / Berkeley / UCLA, then Ivy League and psuedo-Ivys like UChicago, MIT and stuff). D&G is very old-school value, pretty uptight about valuation when it comes to buying things, but they are respected, very large and stable asset base.
If you are a long-term oriented investor, D&C and RCG would be dream places for many of us (me included) to be. Cons is probably the upside is lower when you are a junior person.
Conversely, if you like the thrill of fast-money where you model very deep and get access to all the sell-side resources, pro at L/S MM is you get comp'ed more if your PM does well and treats you well. Con is culture could be absolute sh*t depends on which MM you talk about (even if you work for a solid PM) and your job security is one risk limit blow out away from vanishing.
Thank you very much for this!
Adding on a couple points re: RCG. Pretty much everyone there is free to run their own "partnerships" in addition to the primary job of contributing to the main funds. Direct P&L "comp" can come from this avenue, but its really just a formal way of having a PA along with anyone else who wants to come along with you for the ride plus infrastructure. Greg Alexander runs Acacia, for example. Their L/S fund is managed by John Harris (the website now says Wishbone is long-only, but I believe it is really long-biased). You can learn a lot about positions that are in Sequoia but not Acacia, or vise versa. Though the partnerships tend to be more opportunistic. No one gets paid on direct P&L linkage from Sequoia, but you do get paid based on contributions to Sequoia. For example, an analyst who comes up with a convincing reason to sell out of a position, or avoid buying a new position, which causes the firm to avoid a loss will get paid very well end of year. Analysts are constantly churning on ideas. It is true that they take their time and are thoughtful about deep, investigative research, but that really only applies to stuff that first passes the sniff test and investment committee really wants to work on. Otherwise, at least as of a couple years ago, analysts were required to submit several company overviews with initial thoughts each week which can be a grind. Historically they have hired very, very rarely as mentioned. They did hire the guy from the Sohn conference. However, after Valeant their hiring practices have become more formalized with a stronger focus on looking at folks coming out of banking programs vs. finding the rare unicorn young guy who is good at investing. I'm not sure if they've actually been executing on that point, but its what I've been told. End of day, still a very great place although post-Valeant I'm not sure if their reputation has fully recovered and performance hasn't caught up yet.
Super insightful! Also, doesn't help that David Poppe left to run his own fund, which owns a lot of positions that Sequoia Fund owns.
Besides Wishbone and Acacia, no one else to my knowledge is running their own "partnerships" so that's patently false. Dylan worked on the Sequoia side and left to to pursue some extremely esoteric private equity investment by himself.
Sequoia often hires, Acacia does not because Greg hates managing people.
RCG actually hires a lot more frequently than you would think (e.g. at least 1 analyst a year in recent years). They usually take junior summer interns from top targets like Wharton (had at least one this summer) and convert them into FT. You can see they recently hired an analyst in 2019 from Morgan Stanley (who went to Wharton as well) and an analyst in 2018 out of Columbia undergrad in addition to just the Wharton kid who won the Sohn contest (and apparently left RCG to start his own fund).
Not sure if this is the right place but what are people’s thoughts on Point72 / Millenium out of undergrad
Could anyone comment on the analyst role at D&C? Interested in comp, culture, responsibility, and comparison to equivalent seat at Fido, Wellington, T Rowe. Thanks!
Curious on this as well. Hard to find much info on D&C
Bump!
Bump on d&c
Yes! Bumping this!
Can someone give visibility into comp at D&C for year 1 - 4 RA. What's typically the game plan going into a program like this? Do many of the RAs out of college actively plan to get MBAs, knowing they will be kicked out within a few years?
Are RAs at D&C practically guaranteed spots at GSB and HBS given that all of the senior people seem to have gone there?
Ideally if you start at one of these places you never have to go to b school. But yes you can probably find a good seat at a great b school if you are so inclined
x'actly what i was about to say
Don't most long only AM require MBA for analyst seats? What % of D&C RAs would you say went to business school and what % directly joined another (reputable) firm as an analyst?
My understanding from people working there currently is that D&C out of undergrad is a 2-3 year program with essentially no direct promotion afterward, though b school placement of associates is excellent.
Can anyone please elaborate why RCG is so highly regarded here whilst their performance lagged S&P500 on 1y/3y/5y/10y basis? (btw, is Sequoia a US portfolio? why is the benchmark S&P500 not MSCI World?)
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