Farallon

Question

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?

315benchfor5reps · Accepted Answer

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.

PrivateTechquity 🚀🚀🚀 · Answer

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.

315benchfor5reps · Answer

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

nanner16 · Answer

this is for their vanilla US l/s book. it's a concentrated strategy, so you can't tell the size of that strategy from their 13f unless you know which names are in that strategy. you can guess though, like it's pretty easy to guess that GOOG is in that strategy.

they also have real estate, healthcare, special sits, lending, and international strategies that are all run independently. you can also check old interviews with steyer, the original founder. they have hundreds of positions at any point in time.

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