L/S Hold Period
New to the L/S space. How long are hold periods generally for investments, specifically long investments? Know it really depends but wonder if there’s a “base case” like there is on the private side
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There isn’t
If possible, can you shed some light on what are some of the key determining factors for the holding period?
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We will set aside the pods because that's a different ballgame. But if you are talking about the ~typical~ single manager, you are most likely talking about evaluating investments on how they setup on a 2-3y IRR (eg my target price at YE25 using a multipe of fwd earnings at that time). Even with this framework, you are likely not going to be holding to that date for a variety of reasons including (non-exhaustive):
No offense but these questions are dumb AF.
It’s like saying on average how long do you date someone? You date until you get married, realize it is not a good fit, or they cheat on you. No one says oh I’m going to date for six months or two years.
You own the stock until thesis wrong, thesis confirmed and stock hits target, or something better shows up.
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