If You Could Work At Any Hedge Fund...
There was a similar post from 10 years ago but wanted to get some up to date responses.
If You Could Work At Any Hedge Fund. Which one would it be and why?
Soros Fund Management in the 90s because old school global macro is so sick.
This is the correct answer but replace soros with just being in the game back then. The one man hedge fund doing the same thing was more possible. Bigger edges. Didn’t need the expensive infrastructure support. You could self fund to a great extent by doing old school market making shit while using the profits for that to place your macro bets.
Can you say more? I don't know a lot about old school global macro, any description or links to books / articles would be appreciated, thanks!
Reading up on Soros’ Quantum Fund which was the fund that “broke the Bank of England” would be a good start
Mine ,because it’s mine
well bully for you then.
how big it is?
This in response to @DOW30k" . +1 SB
Says the guy who's trying to get into Alabama IBs
Probably citadel. Just because they produce a shit ton of PMs who eventually go out on their own.
If that is your criterion, Tiger Management is miles ahead of Citadel
what's avg. tenure there? like 3 weeks until they blow you out for violating their risk parameters?
Renaissance Technologies
https://www.linkedin.com/feed/update/urn:li:activity:6634030564791984129
Long-Term Capital Management
Axe Capital
Beat me to it.
Small cap funds who are putting up insane IRRs and most people don't know about them
Examples? Most of the ones I know are probably implicitly betting on the size, value factors. If you strip these out they may not be that good on risk-adjusted basis.
How would size and value factor bets yield insane IRRs? Aren't those premiums like 50-100 bps?
Are you so sure about "unknown" funds with insane IRR? They are probably capped in capacity or spend insane money on infrastructure or they tolerate big drawdowns. In the first two cases I do not see any advantages.
Its #1 and #3. I know a few small guys managing $10-50mm and some have great IRRs. They do micro and nano cap with extreme concentration. Naturally, as you said, they have to deal with capacity constraints and drawdowns and thus have to focus on HNW client base rather than institutions. It can be a rough life, especially doing all the fund administration with limited help. Need great, not good, returns to enjoy it.
Interesting, what is payout be like if they regulary have double-digit (20+%) drawdowns? As far as I understand, HFTs or MLPs are able to pay such a big payouts due to the low risk associated with strategies (HFTs have super high SR, MLPs have 0 exposure to many factors). And I think it balances itself dollar-wise -- they create high returns on a small capital with enormous risks, while MLP guy yields "just" 2-5 percent on couple of billions orthogonally to many risks.
Also, would be happy to hear some insight on Quadrature capital -- they yield great returns with great SR on a great capital base. ex DEShaw guys.
Suvretta Capital Management = friends left citadel for this fund
Millenium = relative who brought in over 15mm in 2016 as a PM her
But more important question, is are they still there and how did they do post 2016? Its no good having one great year then blowing out the next. Also they couldn't have cashed out the 15MM same year.
Why couldn’t he / she cashed in 15m in the same / one year?
L O L to Suvretta even remotely mentioned here.
Obviously Rentech + Citadel are top contenders. But would have loved to work at GETCO in 2009 or Caxton before 2010.
MSMB Capital Management - Martin Shkreli
FREE SHKRELI!!
Yeah, we can't get our hands on him if he's in prison.
Does anyone have any insight on Brigade Capital Management?
Stellar credit fund. They do hy/performing in addition to distressed, long/short credit and equity. To my knowledge, analysts are industry focused investing for different funds across the capital structure for their names.
I'd like to work for Paulson as an IR person from 2008-2012. collect fat bonuses for new AUM and then peace the fuck out when redemptions start because he basically got lucky once
Curious where you see the future of IR? Do you think it is still a great long-term career? Is IR worth it after undergrad? Do know what the starting base is? How about the bonuses?
I don't think it requires a sense for sarcasm, so you should be fine.
I'm not in IR, I have no idea. as the below guy said, that was sarcasm, sorry
Definitely at one of the Tiger Cubs' fund - any will do
Melvin Capital Management. 25 person shop each analyst made well over 5-10mm last 3/4 years.
Lol is this actually true? Hard to believe everyone is pulling in that much..
Looked at some of Melvin's positions, Seem like they do large cap tech, consumer, etc. Not sure how they're differentiating
No way everyone is pulling in that much. Maybe if all the profits were split evenly but it's never that way...
they had 850mm in fees. Gabe prob keeps 60-70%. I actually know personally he pays his secretary who was with him at sac 1% of the carry. she made 8mm last year. each analyst pulled at least 5mm unless their alpha was atrocious or 100% based on gabes calls.
Doesn't look so great now, does it 😓
SAC Capital all day.
i would work at Elliot management buying distressed debt and make them to agree to the terms and additions.
It might take 15 years, but it'll get done!
perceptive
agree
Appaloosa Management, small shop with great returns you know the bonuses are big as hell.
TCI $30bn+ EuM with 10 people, founder made $1.8bn last year alone (fund up +41%).
coincidence that he decided to cut off the charitable obligation to TCI a few years before these monster returns? i think not. on a more serious note, i had no idea TCI was that lean, was always under the impression that they'd have an investment team of 30+. impressive year from them given their gargantuan size
I suppose he cut off the charitable obligation to make up for his $530m divorce settlement - 2018 should have helped with that..
Very telling about the industry that half these responses are about funds in the past.
Good catch. Btw do you know of any commodity based hedge funds that are still around? Most have shut down over the last few years is what I've heard.
Strictly commodities-wise, Ospraie is probably the highest profile one still around. There is Andurand on the oil side, but you hear about some sickening loss of theirs every single time oil goes down.
The multi-managers and old-school macro funds also all run commodity risk.
I am surprised no has mentioned pershing square
Not at all. I wouldn’t want to work for Ackman.
Why?
Renaissance Technologies on their Medallion Fund.
If not them then likely, Citadel or Two Sigma.
Princeton/Newport Partners or Renaissance. Thorpe and Simons are the best in the business. Would also love to spend time at Bridgewater just to experience the culture, would definitely be interesting.
Rentech for sure. Brilliantly managed.
A small fund full of independent thinkers, located 10 minutes from my house, with an extremely broad mandate, where there isn't a single greedy person, everyone is competent, and each person likes their personal life more than their work life. Fancy detailed models and presentations are non-existent.
A man can dream.
AXE CAPITAL!!!
(or RenCap Medallion fund if we're not accepting fantasy HFs)
"RenCap" is an investment bank from Russia, it does not have a medallion entity.
What you probably mean is RenTec, which is probably a good place to work :)
Fortress Macro Fund
I don't care for public equities investing or the nuances which come with it, but I'd say I'm probably inclined to a model like Elliot. Not sure how associates/analysts there allocate their work across activist/credit/ls/pe strats but I like the idea of having my fingers in all of those. But again, not sure if that's how it works there
Their activist tech team stops from dragging the main fund returns negative from their sorry ass distressed practice (in recent years)
Hayman Capital - Kyle "F$ck the CCP" Bass
Odey or Andurand
Rentech
Two Sigma without a doubt. Tech and quantitative research all day, good work life balance, no finance herd wannabes (see: Wall Street Oasis)
LOLing b/c the vast majority of funds mentioned here has terrible Q1-2021s.. .
That's quite the predictive power you have; allocators should pull out now!
I wasn't around for the last two crashes but is that how we now benchmark funds, their month-to-date performance in the middle of a recession? Sounds short-sighted
Sorry meant 2020.
I think you have to acknowledge that funds being down 10-15-20% in Q1 of this year are going to have difficulties.
We’d all love to live in a world where capital was permanent and LPs only checked performance every year or two, but redemption cycles are quarterly and investors ring the cash register when funds underperform.
If our industry as a whole has been preaching downside protection for the last 10 years of a bull market rally, isn’t now exactly when we are supposed to make good on that promise?
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