LPs Cannot Even Get Their Money into Top Pod Shops Right?

Tons of pod shop talk (whether we are at the top or whether this is a secular change for the industry). One thing I have not seen as a potential rebuttal to the "death of the SM" talk is that the true alpha factories (Citadel and Millennium to me a cut above the rest) are not accepting outside capital anymore right? Like, it's a much different argument saying that the top SMs (Viking, Coatue) are going to die a slow death at the hands of a newer MM still looking to raise (Verition, Cinctive, maybe Baly idk) rather than at the hands of Citadel/Millennium (who are basically printing 3x the risk-free rate consistently and have been for years). Seems to me like all these "death of SM" posts assume that the best Multi-Managers are open to taking all of these SMs capital. To me, I just feel like the single-managers will begin to fall more into one of two buckets: 1) Become more like the MMs and employ a sector-head type approach with multiple people allocating capital at the firm depending on different industry specialization OR 2) Transition away from diversification and hold a concentrated basket of top-conviction ideas on the long and short side. Nothing else. Fees would need to come down but you can do this sustainably with much fewer people than you would need in a Multi-PM model. Also not sure of the claim that the top pod shops are not accepting capital that is just what it seems like. 

 

Aperiam voluptate voluptatem error provident magnam deserunt qui harum. Quo at aperiam natus ducimus sed corporis voluptatem quia.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

April 2024 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Citadel Investment Group 96.8%
  • Magnetar Capital 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

April 2024 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Citadel Investment Group 94.6%

Professional Growth Opportunities

April 2024 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 97.9%
  • D.E. Shaw 96.9%
  • Magnetar Capital 95.8%
  • Citadel Investment Group 94.8%

Total Avg Compensation

April 2024 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (23) $474
  • Director/MD (12) $423
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (71) $274
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (225) $179
  • Intern/Summer Associate (22) $131
  • Junior Trader (5) $102
  • Intern/Summer Analyst (250) $85
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
kanon's picture
kanon
98.9
6
GameTheory's picture
GameTheory
98.9
7
dosk17's picture
dosk17
98.9
8
CompBanker's picture
CompBanker
98.9
9
DrApeman's picture
DrApeman
98.8
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”