Opportunistic across the cap stack HFs
Hi everyone,
I wanted to put together a list of funds that essentially have a blank mandate to invest across capital structures, asset classes, geographies, etc. and they do so with value or event-driven angles. The first that pop into mind are the usual suspects like Baupost, Elliott and Attestor, but I'm sure I'm missing a lot. Any thoughts?
Thanks!
A few additions: DK, Canyon, Appaloosa, Third Point, Silver Point, Redwood, Apollo’s HF, Owl Creek, Farallon
By Apollo HF do you mean Hybrid Value or?
No. There is some overlap but the main focus of the Hybrid Value strategy is long-only mezz investing. The Apollo HF sits within the credit division (this is the group responsible for the Hertz CDS trade, etc.).
Arguably Mudrick although Jason does have a background in post-reorg equity
Surprised you’ve heard of Attestor, way more under the radar (and European obviously) than Baupost and Elliott. Top notch investors but not the same brand recognition
Heard about others mentioned here but not necessarily in the context I’m looking for. But yeah, Attestor looks pretty cool and surprisingly they revamped their website from the typical name and adress - looks a bit weird now.
Otherwise, any specific thoughts on them?
Bunch of other ones: HPS, Atalaya, Varde, Castlelake, Monarch, Sixth Street, Centerbridge, Oaktree, etc.
Empyrean, Luxor, Sculptor, Antara.
Most of the Appaloosa spinouts as well.
How many spinouts are there? I know of a macro fund down in FL (can’t recall the name) and of castleknight, which are fairly recent. But earlier examples? No idea
Warlander Asset Management is another one
Nokota and 140 Summer as well. Probably one or two more that I'm missing.
Baymount is the fund you're thinking of, I believe.
Antara spun out of Perry right? How has performance been? Any other good Perry spins?
Curious if anyone has updated perspectives on Appaloosa spins like Castleknight or Columbus Hill.
Boaz Weinstein's Saba puts on fairly exotic trades, I believe they look for capital structure arbitrage. They also have a strategy where they effectively become an activist investor in closed-end mutual funds that trade at a discount to NAV.
Was always under the impression that their strategy was a mix between fundamental and quant, actually leaning on the later… how off am I?
What are some resources to learn more about this type of investing?
very few ppl at these firms do "this type of investing" in the sense of working across asset classes. for the most part, there are event guys doing event, there are growth guys that do growth, there are RE guys doing RE, etc. typically, only the founding teams / investment committees (klarman, singer, etc) will get meaningful exposure across asset classes
This is correct
The Apollo HF does this. Sovereign restructurings, distressed US loan-to-own, long/short US equity, EM illiquids, rescue financings - all sector agnostic and led by the same 20-something analyst.
Castleknight is an recent Appaloosa spinoff that has done really well here. Tepper's nephew (& long-time partner) is CIO
I’ve always been interested in event-driven equities. Seems like a tough lifestyle, especially for the jr guys. Any good threads about the space?
From what I've heard, Glendon could fit too? Technically a distressed/special sits fund but sounded like they have the flexibility to move around the capital structure and different geographies depending on where the opportunity set is
Fir Tree does activism, special sits equity, distressed credit, sovereign credit, real estate, etc. Some analysts who left there have done all of those. Small team (10) and smaller fund ($2-3B) now vs peak-AUM. Glendon has similar flexibility but they invest through a draw-down fund only. SVP buys post reorg equities (TPC Group, CBL, etc.), does distressed-for-control, and a little bit of trading too. Others have mentioned much of the rest.
any intel on fir tree? heard performance has been lacklustre at best?
What is the typical way for analyst with 1-3 years buyside experience getting into this field?
Interested
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