Credit Hedge Fund UK
Hey guys,
What are the best credit hedge funds in London? What would be the average pay at the analyst level, and the career track/progression? I'm deciding if staying in IBD vs Credit HF. Intellectually speaking, I think HF makes better fit for me, and its more stimulating, but I'm worried about some speculation about how pay is not as amazing vs staying LT in IBD. I think its bullshit, but would love to hear anything on this.
Also, who are the best PM's in the UK in credit? Any recent new launch that I should keep an eye on?
Thank you
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Not sure whether still active but there was Jabre Capital doing both credit (HY, convertibles) and equity. Think they had people in Geneva and London. Know they closed funds in 2018 but have reopened something since. Heard that during good years bonuses were very high (multiples of base) and base very competitive, but don't have many more details.
Do we know something about the recent launch of these guys?
https://www.hedgeweek.com/2022/10/12/317876/algebris-alumni-launch-new-…
Is the CIO good? Anyone heard about them?
Prior to Andromeda, the two were working together managing a UCITS (ca USD 1bn in asset) at Algebris. They are launching with some institutional capital (so guess sticky for at least 2-3 yrs). They do macro and RV trades. Focus on DM but investing in EM too. Trading rates, credit, FX.
Alberto Gallo is on TWTR:
https://twitter.com/macrocredit?t=P65aDF_8UI1q-K6hIcDCcA&s=09
What kind of credit do you want to do
That's a good question. I've yet to understand what are the differences in trading styles. I'd like to do something were I can apply a macro approach, but that ends up understanding also micro trends. (I.e is the convertible of delivery hero a good investment?)
Do you have any inside on the HF above btw?
Why do you want to do credit then? It seems like you should do more research into your area of interest before choosing to leave IB for a credit hedge fund. If you want a macro approach, then you're not really going to be looking at investing in delivery hero converts. I have not heard of Jabre or Andromeda, but from the comment above, Andromeda would more macro/fixed income tilt than the typical credit hedge fund which is primarily fundamental driven.
I think they do both, and actually, 80% is credit. For example, if they wanted to be short UK, they would look to short bonds from corporates that could give them some convexity. If they wanted long Euro, same thing... Or art least, that's how I understand top-down with bottom-up.
But yeah, ofc, I'm trying to do some DD regarding who are the players in the space and their strategy! That's why all the questions. I appreciate tho your time and all the good responses :)
Not sure this makes a ton of sense. If you want to short UK credit then there's indices you can short/CDX you can buy. When you talk about convexity, that makes me think you are trying to be short UK rates moreso instead of UK credit, which is a macro trade. I think what you're saying though is that you want a fund where they have a few themes they want to invest in, and then within that they find individual corporate securities (instead of indices and macro trades) that will help express that view. That's essentially what all credit hedge funds try to do, more or less.
First, ask yourself why do you want to do credit? That answer will tell what sort of credit fund you would be focused on.
Because yes there's a lot of players in various spaces IG Long/Short, Long/Short Opportunistic, Distressed, HY, Structured credit - but every fund has a different preference/core area.
For the actual list of funds, just look at prior WSO threads, every large US credit hedge fund has an office in London. There are few London-based funds with no New York presence. - Attestor, Ironshield, Arini, Lodbrok, Tresidor, Axebrook, Sparta, Serone among other small players Albacore and Arcmont also notable but not hedge funds. You're not going to work for a startup so forget about trying to stay on top of new launches.
Gotcha - thank you!
On that note, do you think its too risky joining one of these "newly" created HFs (aka startups)? In my mind (being risk-taking), going to these places have a major upside vs the likes of Citadel, etc. Yes, you can have a bright career in Citadel, and brand-wise is amazing, but its very corporate, and I guess that in terms of performance and ability to do "outside-of-the-box" stuff its quite difficult (but this is just pure speculation with no inside).
If the PMs/founders are good, you can join something that could be a long-term wealth bet for you, vs if it blows, you have at least worked at a HF with people that are recognized in the street vs. being another analyst at Citadel/BAM/etc
I know its very difficult to join these kind of places, and even more doing it from an M&A job, but would appreciate your thoughts in here on the topic of new HFs vs historical players.
Ok so you need to do more research and generally just more reading on the WSO threads to learn more. I'm not trying to be mean, but your understanding of the hedge fund industry is non-existent, and you would do well to read up on the content around your various questions on this site.
on Startups - No hedge fund startup is going to hire you, because you don't know anything and they can't afford to take the time to teach you. Why on earth is a founder going to hire people that are not immediately value accretive to his business. This should be very obvious. You also should not want to go to a startup without a good pedigree. If the startup blows up and your only hedge fund role was at that startup, you're going to have a very tough time getting another hedge fund job. This should also be obvious.
on Citadel - Not corporate at all. Very cutthroat and you eat what you kill if you are a PM, and your analyst comp is linked to P&L when you're senior as well. Learn about the Multi-manager structure. You can google and use WSO.
M&A job is not an issue if you want to join a hedge fund. But you need to be sharp in investing, and know the industry better.
SVP has a very smart, lean team in London with an absurd amount of AUM
They are not a credit hedge fund
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