Credit at a pod-shop?
Was recently speaking to a PM at a MMHF that focuses on credit at large (EMEA and US credit, HY, CDS, the whole lot - some tactical equity even), and while I am very familiar with how pod shops usually work, I am starting to think this particular PM has a slightly larger mandate. He mentioned that his trades are "structural" longs and shorts, carry trades and a ton of RV, and how they have an investment committe. Don't really want to say much more than this an appreciate it is very little to work off, but that doesn't sound typical right? I would've thought a credit MMHF works very similarly to equity one, essentially calling quarters etc. The fact that he mentioned that there is IC, and structural longs/shorts (implying longer investment horizon), makes this maybe a bit more flexible of a mandate?
Feel free to PM me
All of the multimanagers have credit teams and broadly the pods are becoming a bigger player in the credit markets - for the most part Guys focus on ig/hy/more performing credits
I know pod guys spend allot of time looking at new issue - and trading that around
There are some credit trading teams that have >5 people and other pods that are like 1-2 guys
Usually the pods/pms with a longer track record have more latitude in terms of how long they hold positions and book direction
Pms that are newer / have blown out at other places are held to tighter risk parameters and probably have to go home flat every night
Will PM you tomorrow, cheers mate
Anybody have any views about Andrew Silverman’s team at Schonfeld? Heard that their mandate is to run more akin to a SM like Diameter or pure HF Anchorage a long time ago, rather than your typical pod.
I spoke to them and got the sense that while they had looser risk limits/broader mandate - they were still primarily focused on HY/stressed. I wouldn’t expect them on a committee - not that that would drive alpha
Interesting. Did it sound like an attractive setup to you?
Having an IC in a pod shop is very odd because that seems like the PM doesn’t actually have full discretion over positions. The Schonfeld set up seems interesting as most places don’t even like doing stressed as it is more illiquid
So on balance, is credit at a pod different then equity in its philosophy? The reason I ask it's because I recently turned down an analyst position at a 12 months or so old pod doing credit, because I can't see myself clicking in that investment style
MMs have really evolved in the last 3-5 years. They are able to lock-in capital for 3-7 years (some maybe even 10). Which has allowed them to enter into more structured products in the FICC side of the business. Physical commodities, distressed debt and so on. An IC is not as weird when you are looking at those solutions still this area of all pods is small % but they do exist now.
Any insight into D.E Shaw’s Credit Opportunities group?
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