Farallon

Barely seen anything on here about Farallon especially given its size. Any insights on comp, culture, recent returns. Are IPs assigned to a strategy or do they get exposures to different strategies? Same with sectors. How often do they make private investments?

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They're down 10% the last four quarters, don't know how accurate WhaleWisdom is though. Their portfolio, at least what they report on 13f seems like it's in line with the S&P500 in performance. Don’t know much else about them except their founder is a billionaire.

 

Wrong. They held up well. You can’t use public longs available on whale wisdom and extrapolate that to the entire fund’s performance for the year. Had a few great merger arb bets (ie TWTR), and let’s not forget 2 things: 1. They have $10-15bn of US long equity exposure vs $40-50bn of AUM, so you’re completely ignoring other strategies like credit. And 2 you’re ignoring the short side (they’re good short sellers too) and international names

 
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Wrong. They held up well. You can't use public longs available on whale wisdom and extrapolate that to the entire fund's performance for the year. Had a few great merger arb bets (ie TWTR), and let's not forget 2 things: 1. They have $10-15bn of US long equity exposure vs $40-50bn of AUM, so you're completely ignoring other strategies like credit. And 2 you're ignoring the short side (they're good short sellers too) and international names

Found the guy who actually works at Farallon Haha

 
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They were basically the first ever multi-strat fund / invented the model. Today they’re 1 of maybe 3 or 4 huge multi strat players, probably the best and most reputable. Can’t really comment on the private side, but they’re fantastic public mkt investors. Rare case today where you have huge scale ($40-50bn I believe) and great investors.

Know a few folks in their L/S / event equity businesses who are extremely bright. Very well ran shop, great culture, great DNA with Tom Steyer. When you think of great remaining event equity shops, Farallon has to be very close to the top if not the top. I think if you ask any sr person the consensus is the same. Excellent fund

 

Bump - does this firm have the same cachet as a tiger cub despite not being one? My impression is that tiger cubs = Ivies, so all of them are good but not all good funds HAVE to be a tiger cub. This seems like one of the good rare non-tiger funds which is like Stanford/MIT?

For the love of Christ will you people stop comparing every hedge fund to Tiger Cubs!

This is like asking which is better, beef wellington or sushi? Totally different target audience, preparation, flavor profiles, cook times, and sourcing. They do not have remotely comparable strategies, offer completely different products to their LPs, and require wholly different skillsets to execute.

"If you don't have any enemies in life you have never stood up for anything" - Winston Churchill | "It's a testament to the sheer belligerence of the profession that people would rather argue about the 'risk-adjusted returns' of using inferior tooth cleaning methods." - kellycriterion
 

I think it’s an okay comparison. Outside of the good tiger cubs, I think Elliott, Soroban, Third Pt, Baupost, Farallon, Pershing and then a handful of 1. Smaller SMs and 2. Good LOs are top funds. So maybe 10-20 great funds similar to Top 20 School concept

 

Is the event equity strategy more active/activist or passive (i.e Merger arb, legal, etc.,)? Do the Merger Arb teams also do L/S equity and are analysts sector specific or do they work across the equity strategy?

 

its a separate fund from my understanding, flagship only does l/s, credit and risk arb. wouldnt expect separate acquisitions/management teams just because of size of team + fund

 

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