Went through recent Pod (Stripe Dan Sundheim on YT) - want to gauge your thoughts on Dan's preference for PE bros over LO/L-S guys hiring? I would assume "commercial sense" gene selection would better be served with no filtration and given its about finding outlier contributors, who would hopefully add alpha to book, wouldn't restrictive hiring remains contradictory here?
Sure he may have said that, but by far high highest PNL contributors have been fmr public markets investors and not fresh PE bros. By far
Buy good companies with moats you can hold for 3-5 years, and then wake up at 3am to furiously trade earnings before the analyst can digest it all.
This shit is so vague, stuff like "add value", "intuition", "just don't have it" are all buzzwords that could mean anything.
At no point does that tell you about how an individual can improve their idea generation or diligence process.
Just sounds like a weird holier than thou thing. I'm too good to hire from Citadel, and even the prestigous ol PE investors can't think like me.
Hiring from PE is a great way to only interview and hire candidates who are smart and hardworking. I'm not saying non-PE candidates are not smart, but you'll be interviewing so many more candidates, which isn't an efficient use of time for a lean firm. This isn't the best practice, but complaining about PE candidates taking 3yrs to ramp up proves that point that 2+2 candidates aren't much different than non 2+2 candidates.
I find it kind of odd and demeaning he would say that as I’m sure many analysts on his team see him as a role model and leader’s role is to inspire and lift up others. Perhaps he’s venting publicly to his analysts to be better?
In my experience, analysts who come from PE are on average a lot better than analysts who come from say ER sellside. The best and brightest at the college level simply do not go into ER. The comparison against those who went straight into public equities buyside is less obvious.
Your point could be valid for individuals who enter PE directly out of undergrad. Not for 2+2s…why anyone would do something as brainless as banking still astounds me
I mean this all really goes back to how people self-selected at the college level. The best and brightest went straight into PE/HF, the next tranche went into banking, and then the bottom of the barrel went into ER. Pretty accurate rank order of average buyside analyst quality by archetype.
its just a way to say you want the brightest people without any *direct* experience so you can mold them. thats all its saying. regardless of what pe ppl do getting the actual job in pe is hard.
It’s hilarious that people on fintwit think they can criticize dan..
It’s pretty funny seeing this knowing Sundheim day trades a lot
the guy got crushed in’22 dip and still thinks he is a “hedge fund” investor LOL.he isnt a stock picker. guy is just a long levered tech beta disguised as a sophisticated L/S investor. i still remember they significantly overpaid for the stripe deal and was bagholding so hard. D1 is a dust shop im sorry
ignore my title dont workin PE or finance now at all
What do you do now and why?
“I want to hire people with no public markets background”
“They take 3 years to ramp up”
“Not all of them are moneymakers and hit rate is below average despite a 3 year ramp”
surprised pikachu face
Why is a manager who usually doesn't have public interviews doing one in this market? He's not the only one I noticed either. I wonder who their intended audience is. To be fair there doesn't need to be a reason.
He’s raising a new fund right now, it’s marketing
My first thought was "all the world's a stage" but the manner of it seems odd.
All the SMHF PMs who kept away in their ivory towers are now doing interviews now. Kelly Granat, Dan, even Chase. They are feeling the pressure.
Who interviewed chase?
genuine question who still has money in tiger global? why and how do they still have a public portfolio?
lee, philippe, thomas, steve as well
andreas has been holding out
del
I legit know someone who was public markets there.
Amazing shop amazing people
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