Was curious if anyone has any perspective to give on the few mid-size funds out there that operate an event driven, cap structure agnostic mandate under one team/one PM. A lot of these places tend to keep a lower profile but thinking of places like HG Vora, Luxor, Senator, Empyrean, Owl Creek, Nokota, Nut Tree, etc. that have ~20% + of AUM in 13F securities.
Curious on how these places run from a risk/drawdown perspective and how they market themselves to allocator's given the portfolio balance can shift so much.
Considering some of these funds returns over the past few years the ability to easily shift focus to event driven and value equities when distressed credit isn't attractive seems really attractive but a lot of the multi-strat funds like York, DK, King Street etc.have silos built and doesn't seem like analysts get as broad exposure.
a good spot to be. Many friends at the above. Luxor is up 30%+ this year. Most of them simply market on performance and sharpe ratio like any other HF, nothing particularly special. Some have deep roots in distressed so they focus on that marketing schpiel.
Seconding the OP's request for insight on risk management frameworks. How do you create a risk mgmt structure for such funds that both 1) works, and 2) gives LPs comfort?
Or is there no good answer besides "find LPs that understand your exposures will swing around and are aligned/will give you a wide berth"?
Laborum pariatur architecto repellat tempora. Excepturi rerum nihil optio rerum voluptatum ut. Illo totam enim esse rerum nobis voluptas. Cumque omnis unde est laboriosam nulla ipsam blanditiis. Placeat est minus in quisquam ipsam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...