LS equity Europe outside platforms
Has LS equity died in Europe outside the platforms (citadel, p72 etc)? More and more shops stopped shorting or shut down. Anyone above $1billion AuM left that isn’t market neutral?
Bump
the 1mn dollar question
There are many down here. Absolutely not comparable to US, but there are still many multi $bn HFs around. Take AKO, Egerton, Crake, Helikon, etc. You'll mostly find funds in the 500m to 2bn AUM range in Europe, but few are larger than that (AKO >$10bn).
Some of the names that you mention have a -30% year, so the shorting bit didn’t work. Surprised not more shops with 2-3bn+ AUM. Wonder if any shop has seen decent AuM growth over the recent years.
Helikon got killed on its gold exposure (they were long certain names and short gold to hedge - it didn't play well at all this year with gold flat and miners killed by inflation & strong USD). They had a strong track when at Kairos and span off in 2020 to launch their fund, capped AUM at $1bn given their strategy targeting small & mid caps. I think they got back 15% of perf in Oct thanks to short on ORP FP.
Crake down between 15% and 10%, I heard not quick at cutting their longs (whereas shorts worked).
Another L/S is Parus, I don't know how big but guess AUM $500M-$1bn. Flat on the year, strong track record.
Multi $bn HFs not platforms exist within banks such as Exane, Pictet, UBS, etc.
All depends on net exposure. More and more directional shops either run market neutral or give up shorting (can’t justify fees with bad performance). Parus? Never heard. I think anything under 500m AuM just doesn’t make any sense with a more institutional set-up, ideally 1bn. Unfortunate that there are barely shops left in Europe, performance preceded outflows.
Any above $1.5bn apart from the usual suspects (AKO, Egerton) apart from the platforms? Based on discussions with European LPs and GPs that space has been decimated.
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