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Maven and Jane street not hedge funds sadly
Point72 also has a capital markets team. From what I gather at the pods, these teams prefer to hire out of IB coverage, rather than ECM/DCM. Modelling skills are seen as more valuable than knowing the technical aspects of how these markets work
P72 is a pretty big one
Source: interned at ECM before and they were always a big account
Based on the highest ranked content on WSO and the context provided, discussing hedge funds (HFs) with an active ECM (Equity Capital Markets) strategy is a topic that aligns well with the interests and expertise of many users on the platform. While the specific details about each fund's ECM strategy might not be directly available in the context, we can infer some general insights about the firms mentioned:
BAM (Brookfield Asset Management): Known for its diversified investment strategies, including real estate, renewable power, infrastructure, and private equity. While not traditionally known for ECM, its vast portfolio might involve ECM activities.
Citadel: A global hedge fund and financial services company, Citadel operates across multiple strategies, including equities. Its subsidiary, Surveyor Capital, is a fundamental equities trading unit, and Ashler is likely a typo or a less well-known part of the Citadel umbrella focusing on equity or ECM strategies.
Millennium Management: A global investment management firm that employs a multi-manager platform, including strategies in equities. While ECM is not explicitly mentioned, the firm's diverse strategies could encompass ECM activities.
Jane Street: Specializes in trading and market-making, Jane Street is known for its quantitative approach to trading equities, ETFs, and other financial products. Their sophisticated trading strategies might indirectly involve ECM activities.
Maven Securities: A proprietary trading firm with a focus on market-making and arbitrage in equities, commodities, and foreign exchange. ECM strategies could be part of their broader trading activities.
Jain: This could refer to a specific fund or individual not directly identified in the context. If it's a hedge fund, it might engage in ECM strategies as part of its investment approach.
BlueCrest Capital Management: Previously one of the world's largest hedge fund firms, known for its fixed income strategies. While primarily focused on fixed income, any involvement in equities or ECM would be part of a diversified strategy.
Schonfeld Strategic Advisors: A global multi-manager platform that invests in equities, quant, and tactical trading strategies. ECM could be a component of its equity strategies.
Qube Research and Technologies (QRT): As mentioned in the context, QRT is known for its quantitative approach and secretive nature. While specific details about an ECM desk are not provided, their quantitative and technology-driven strategies could involve ECM activities.
This summary is based on the most helpful WSO content and threads related to hedge funds and their strategies. For more detailed information on each firm's approach to ECM, direct research or inquiries within the WSO forums could provide additional insights.
Sources: QRT ( Qube Research and Technologies ), Q&A: MD in M&A and Cap Markets (Bulge Bracket and Boutique experience), Tell me a joke., Q&A: I grew up in Consulting and reinvented my brand 3 times
Single manager loser here, please excuse my stupidity, what exactly is an ECM strategy?
Flipping IPOs and follow-on allocations while lying to everyone involved about how they never flip
But don’t most IPOs just pop day 1? Can’t you just dump day 1? How do you lose $ here and why isn’t more $ allocated to this strat?
Again please excuse my naivety haha. Never looked at stuff like this
Many IPOs pop on day 1 to the tune of 5-8%, sure. Massively dumping allocations on day 1 creates all kinds of hairy situations with liquidity and available bid prices. It also only takes a few losers to wipe out a bunch of incremental gains over time. If it were as easy as get allocation then dump everything indiscriminately, then yes more capital would be allocated to this strat. The fact that it isn’t tells you that, well, it’s not that simple right
Seems more flows-driven / liquidity / technicals etc right? Someone above said modeling is a skillset — if holding something for a few days / weeks (right?) how is that a fundamental strategy?
Would you mind sharing an example of a trade / thesis an ECM pod would put on?
Not a fundamental strategy. The reason why more $ isn't allocated here is that it is a strategy that is essentially arb'd out at this point. The strategy requires that the fund has to participate in almost every IPO and FO that are brought to market. This allows ECM desks at the bank cover even the shittiest of deals, in return, the fund hopes that they can get a larger allocation in the "hot" deals that are multiple times over subscribed. It is also very much a fee based game, if you are trading through the right desks and driving business for them, they are going to be more inclined to give your fund a decent allocation. Getting a reasonably sized allocation is the name of the game here. In the early days this was not as difficult, but as more and more money flooded this strategy, trying to get an allocation that actually moves the needle for a decent sized fund has become more difficult. Further to that point, lead VCs and sponsors who are taking their companies public are usually going to try to block these funds out of the deals. Why would you allocate to a group that you know is going to trade out of the name the second it is up 10%?
Segantii
CGE
Millenium
Baly
P72
Schonfeld
Verition
DK
Marshall Wace
HBK
North Rock
Moore
Segantii
Ghisallo
Lykos
Cinctive
LMR
Egerton
Rokos
The list goes on and allocations only so far….
Have heard verition has one of the best cap markets teams
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