The Elite Event Driven Multi-Strat Hedge Funds (Elliott, DK, Farallon)
Wanted to start a thread regarding recruiting and working for specifically Elliott, DK, Farallon, I cannot find much info on these funds at all and have not been able to get looks with anyone there. I am currently at a MFPE and was at a top BB before and am HYSPM, I've gotten looks and offers from all the pods (great teams), a few elite SM and other HF, I have path to promotion at my MF likely as well.
By far the smartest peers a few years above me went to these Multi Strats and are clipping unbelievable numbers and have incredible work life somehow. Are these not the pinnacle seats, can do publics and privates, distressed, activism etc. Although it seems like Merger arb and Converts pay insane too??? (one of the peers in questions works in one of these groups and just bought a known brownstone in the upper east...cash).
I would love to know more about these funds, comp at these places, which groups are the best? How to angle myself to get into one of these places?
Bump
Bump
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Retired now but can comment on this.
A large portion of the wealth creation at these firms comes from the deferred reinvestment into the fund. This is mandated over certain thresholds ie. 1Million + bonus is X% deferred (can be held in the fund fee free or Tbills). There are then preferential kickers, points and attribution at certain stages. Truth is that these firms do not lose money and I am very specifically talking about Davidson Kempner, Elliott and Farallon like you are mentioning in your post, the returns post fee are typically high MSD. Comp here is different then pods and SM I cannot comment since I was quite senior and imagine its different from shop to shop. I will say however, you will be paid significantly more than your MFPE counterparts, also the wine & dine + expensing policies are incredible.
All three of these firms are private and owned by everyone who works there (varying degrees), they also pass through much more than you would expect to LP's
The compounding effect is pretty incredible when you have full confidence you wont lose money and get 12% come hell or high water ;)
Wealth creation at these firms has minted more than a dozen billionaires, Tony was an intern at DK and is now a multibillionaire, Michael Herzog at DK was recently ousted and in the court documents you can infer out he is a billionaire, there are 3 others here. Paul and the 6 other equity partners at Elliott are billionaires, many chose to start their own shops and have done very well. Nicolas Giauque and the founders of Farallon are billionaires and a dozen of the seniors are close.
You are completely off on the return stream of at least Elliott and Farallon
Care to elaborate
bump
All I can do is share my experience with them. It basically was like dating/marriage. Hiring at junior levels is basically seeing who they want as their son / son-in-law to bless with a cushy job and a path to make or take over the management of large wealth. To me personally it felt like if you want to marry their daughter / make their employees your new family and brothers then go ahead. Otherwise, it’s just someone else’s empire and wealth that they’ll manage. Paul Singer will be running Elliot from the grave. The people next in line are his right hand men and will do things as he wanted. I figure the same with DK and others in that private HF world.
Good luck
I’ll take the under on Tony at multibillion and Michael at one.
OP thinks everyone and their mother is a billionaire
Think you can run the math on Tony, public ownership puts him over one (you can google this), private partnership unvalued likely pushes to multi. In regards to Michael math below totals him at or around 1B no?
"Herzog claimed he decided to leave in late 2024. Instead of retiring with the benefits that he expected, he said he was forced to redeem his interest in the fund. Davidson Kempner has so far kept 10% of this redemption, which totals $80 million, he alleged." - Bloomberg
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