Thoughts on Elliott, Baupost, Third Point and etc
Super interested in distressed investing and was wondering if anybody knows what the process is like at Elliott / Baupost / Third Point? Elliott seems the most secretive but I've heard a few people joined from other reputable credit shops after working on the buy side for a few years. Do they hire bankers? Looks like Baupost and Third Point definitely do but think distressed debt is a very small part of Third Point's business and am not quite sure about Baupost.
Have also heard that people say distressed investing has the lowest upside (compensation wise), not quite sure if that's true. Would actually think it should be the most lucrative strategy. Do people in L/S actually get paid more in general?
Any insights here would be greatly appreciated!
Bump
Distressed investing is a small space relative to L/S, especially if playing in loan to own / chp 11 space. You’ll see similar set of players in the creditor committee setups. Equity L/S has lucrative payout only because of the fund economics. You have these 10bn+ funds with 15 IP or fewer. For distress investing, either the fund sizes aren’t as large or there’s more headcount involved. Either way, at some point it all becomes a fund economics proposition rather than a “total comp/general salary” type of consideration.
Thanks, this is super helpful. Curious are you currently working at a hf?
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