Articles coming out that Jain is lauching with $5.3b and 200+ employees and 42 PMs. Don't work at a pod but this feels like a really bloated cost structure for that level of AUM no?
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Hard to tell based on summary metrics. Aum per employee is actually higher than MLP or Citadel, I guess, going off their employee counts (5.6k and 4.4k).
Only hit half of his target after granting LPs discounted incentive fees in perpetuity also... I have a feeling this is going to be a shitshow. This combined with the letter asking market neutral funds to use the cash return as a hurdle rate makes me think the clock is ticking on these sub-par MMs.
I disagree. The portfolio managers and infra people they hired are top-notch, high-calibre.. My guess? They'll be at the 3rd rank after MLP/Citadel.
Did you get hired there? Lol
Congrats on Jain
I can only comment on equities as I don’t know the macro / commodity world, but I would be really surprised to hear someone refer to that group as top caliber. If you disagree, would be interested to hear why. We don’t need to say specific names to put anyone on blast but the vast majority of the equities group are either 1) inexperienced in the pod model 2) young / up and coming 3) got blown out and have been on the sidelines 4) their fund got shut down 5) twitter personality who hasn’t invested in years and 6) young and stepping into a huge role with no prior relevant experience. Open to being proven wrong
Maybe has to do with the interest rate environment as well? I think this is a difficult time for fundraising for the buyside as a whole not just Jain. Their impressive management also seems to point to this. Not to mention the insane performance for markets in last year. Just my 2cents.
I don't think they'll stop at $5bn
Idea is it will scale most likely in due time... but want the talent ahead of time to ensure performance is good and then raise from there
To be fair, they wanted to launch with much more than $5 and couldn't do it (even w/ the incentives herzy mentioned). Don't get me wrong, still a hell of a launch. I was just surprised by the AUM / PM numbers (~120mm) but I admittedly have no reference point for how that stacks up at Citadel/MLP/p72.
Talent hired seems mixed
Would be shocked if this didnt crash and burn like Exodus given poor talent and inflated ego of founder
exoduspoint = crash & burned? lol
relative to expectations before launch? yes
Certainly has lagged the others and underperformed
Agreed on some underwhelming PMs getting books there. I think an outcome like Exodus Point would be a relative win - added $5b to AUM despite underperforming other podshops.
The hires on macro side are very aggressive and typical names you would not expect at a MLP super-pod. Will they succeed not sure but it is a much different style than MLP which runs risk tight.
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