Redwood
Seems like a solid shop in terms of AUM/IP but have not seen much about it on here. Anyone have an idea about:
1. Strategy: Long term/Short term? Equity/Credit?
2. Perception of the shop on the street
3. Culture
4. Comp
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Bumb
Very well regarded l/s cross cap investor but largely known as a HY opps/distressed manager. Several successful spins from the firm but not sure about comp or culture. I would guess its comparable to silver point etc
Feel like comparing them culturally to silver point is a bit of a disservice since Silver Point has a notoriously hard culture. Retention / longevity of analysts at Redwood appears better than Silver Point.
On recruiting, they also primarily recruit mostly people with existing buyside experience, primarily at other distressed credit managers and there appears to be a decent representation of analysts with legal degrees. Recruiting I believe is through a structured process that I've been pinged for before.
Just how bad is Silver Point culture? An hours thing or dealing with screamers…or both like Apollo?
Any idea on how much equities make up of their total AUM?
are they recruiting?
There’s definitely been some sort of shift in Redwood in the last 12-18 months. Not sure what it is but usually they would hire once a year, if at all. Now it seems they’ve made several hires and some have been particularly junior in nature (taking people from the sellside with very little experience). Maybe it’s juniorization to account for a decent level of turnover from more experienced analysts that didn’t make Partner post COVID.
What recruiter do they use?
Cascade is one of them.
Any idea of how much equities they do?
It varies but it’s unconstrained so they can just straight up buy stocks as a fundamental play and not related to a distressed situation/event driven. They don’t really short tho.
they got a new CIO
No this is not related to Kliksberg taking over from Kolatch. I guess it could be but the change in management took place well before this
They also likely need more headcount after launching the redwood BDC. Wouldn't be surprised if some of that was inter-connected as they also hired a head of private credit originations as well.
So are some of the new hires not working on the public/distressed and just there to do BDC work?
.
they made some absolutely awful investments in recent history. and turnover got pretty bad for what was once a very low turnover shop (true for other firms too)
what was the source of the turnover?
.
curious what caused the turnover as well
Pretty sure they have gottten hosed from a mark to market perspective on their China / India bets. A couple partners and another analyst I believe have left in last six months or so.
Are there any funds out there with a similar mandate allowing IPs to basically invest in anything?
Bump
I think places like Nut Tree or Empyrean may fall under this
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