Most respected funds out there?
Obviously the 3 big tiger Cubs + Pershing get the most attention, particularly on this forum. But does anyone have any intel on the lesser known funds that are equally, if not better, respected/prestigious on the street? Guessing there’s a small subset of funds with >$700m per head, but some names would be helpful. Thanks
I don’t think this is the answer you’re looking for but...
I’m not entirely convinced that those elite tiger cubs add any value whatsoever beyond a tech index. It seems like they just aligned with tech decades ago and enjoyed the ride. Could be completely wrong, let’s see if they can still perform if the tech factor goes to shit. Ackman’s track record just makes him look like a white collar gambling degenerate tbh.
While most don’t consider the multi managers as elite/prestigious, IMHO Citadel and Millenium should definitely be a lot more respected than all of those firms. It is much, much more likely that their performance is a result of skill.
Unfortunately I think there should be a distinction between what’s a great fund to work for and what’s a great fund to be invested in.
For a lot of people - the cut throat and apparent short term nature of MMs are deal breakers. You can be an excellent investor but sometimes, things are just unpredictable and Citadel won’t give a shit about a little bump in your career. SMs provide way more career stability which is very attractive to kids that want to be in public markets - especially if you’re coming from 2+2 where you’ve worked pretty hard (along with good luck), to get to where you are. The thought of going to an MM where you have to relearn a new skill while taking on the risk of losing your job in a short span, just makes it unattractive risk/reward if you’re coming from MF PE for example. The SMs have a stickier employee base and it really is true that they are lean teams where you do benefit a lot in the up years. So it definitely is much more attractive to work at an SM versus MM imo.
Which type of fund would I rather be invested in? Probably a Citadel versus Tiger cub. LPs don’t need to give a shit about culture of the firm or whether an employee has lost his job. Just make me money and the MMs seem to do it year in year out in a market neutral way.
The big tiger cubs have been around for awhile and have big capital bases. As long as that’s sticky (who cares why people allocate money to your fund), I’d rather work at an SM any day.