Why is D1 not considered a top SM?
Recently saw a thread on the top SM HF's in terms of performance and how well they are expected to do. Every single list only contained top MM spinouts like Candlestick, Ilex, etc. I do agree that these funds will probably do very well, as their founders were all top PM's at the best MM's, so they obviously are very sharp. I also understand why Tiger Cubs have been receiving so much criticism lately (I will never understand why LP's would pay Tiger 2/20 to simply buy meta, microsoft, google, and amazon when they can just do that themselves).
However, I think Sundheim is extremely smart, has a proven track record, and was up 20.4% in the first half of this year. That being said, why is D1 not considered a top SM HF?
Idk what top SM means but they were down 50% in 2022. Any fund down that much in a given year is going to face scrutiny....
Fair point. So do you think the entire L/S model should be under scrutiny unless you run it market neutral like the MM's do?
They still aren’t even at HWM..
A top hedge fund should hedge. It does not appear they hedge (in any functional sense)
Your logic:
sundheim is smart: ok? A lot of people are really smart. OUTCOMES is what matters. If intelligence was the end all be all, then track records would be correlated with IQ….but they arent
sundheim has a track record: ok? So do a lot of people. His track record is from his viking days. What about his track record in the years as a standalone fund? A lot of people have track records. You’ll find people with great performance in the first 10 years and bad in the last 10 years. You can’t live off the first 10 forever into perpetuity
sundheim is up YTD: brother, the market is up over 20% YTD. Take his 4 year track and annualize it vs the s&p. Is this the result you aspire for?
OUTCOMES >>>>>>>>>>> prestige
very insightful, thank you for this
Doesn’t d1 hedge at least a bunch of their beta?
It is a top SM. Not sure where I would pick over it
How are they compared to the other big Cubs? Tiger Global, Lone Pine, etc
Tiger Global isn't a good hedge fund. Lone Pine is good. Coatue is good but lacks stability. Viking even worse and less upside.
That last point makes you wonder how lol investing can be even at a large SM
what's comp capped at?
Could you please elaborate what's their process? Curious why it's horrible?
Some pretty high profile whiffs on their private book.
Sundheim is a steller investor. Don't think that's ever been debatable. However, systematizing your investment process and building a firm which invests like you is not straight forward. Alot of successful investors have tried to "code-ify" their process when they need to manage a firm, with mixed success. MM spin offs like Woodline and Ilex are favoured bc they are run by consistent top performers at Citadel, and their risk focused way of delivering consistent alpha is in high demand among allocators at the moment, whereas the directional approach is less in favour.
Because their returns haven't been comparable to most top SMs for something like a decade. They're not even a top performer among the tiger cubs or grandcubs for the last 4-5 years and have become a typical long beta consensus junky that got stomped during the mean reversion. HF doesn't give a fuck about your prestige they care about how much money you're making.
The number of clowns on this forum has gotten to an all time high.
why?
Delete
INSTACART
Could you please share the link to the thread on the top SM HF's in terms of performance again? Thanks!
Have any of you guys actually looked at the returns since inception or read the investor letter from last week....? Idk but ~15% after fees since inception is pretty solid in my book. Yah 2022 was tough, publics were down like 40% and the main fund down like 30% but they are above HWM again, ~15% annualized return since inception... idk pretty decent to me and he is a smart dude.
Yeah but not on this forum infested with mm pod advocates. Good luck convincing any of them that it's not just beta and being long 1-2 tech coverage stocks
.
Who are you? PM me
GG?
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