Why move from distressed HF to RX?

Anchorage partner recently moved to join PJT; it seems there's a handful of buyside distressed guys in my network moving back into the sellside.

Is this a result of lack of distressed opportunities vs decent deal flow? Better fee margins / pay structure? Internal politics at these funds? Better monetizing one's personal network? Any insights would be appreciated!

2 Comments
 
Most Helpful

Don't know anyone who made the move so can't give any first hand accounts but would imagine from a risk adjusted EV of comp perspective it makes sense to go back to RX. At the partner or even senior analyst level in a HF you'd probably be getting paid out largely on the basis of returns which have been pretty well documented on this forum to be pretty poor for distressed post GFC. Conversely, in RX you'd be getting fees solely on advising on the mandate and even though RX activity is down, there are still situations around. Also I'd imagine the firm can set up a reasonable floor for comp even if Rx activity decreases further given the level of m&a activity generating massive fees for banks as a whole (maybe there is a similar analogy on the credit HF side with setting up CLO arms and the like but plenty of ~1-4bn distressed HFs that just don't do that and basically have no path to growing AUM significantly). You also have pretty much zero risk of a boutique like PJT or EVR that does RX just no longer existing or massively downsizing vs a fund like York essentially dissolving its HF or Anchorage losing ~50% of its higher fee HF money. So I feel like unless you genuinely couldn't see yourself doing anything other than investing it seems like a rational choice for those that just want a high paying and interesting/engaging job. Would imagine major trade off for those that are indifferent to investing vs advising is just harsher lifestyle so if that's not a dealbreaker I could understand why people would jump. 

 

Repellat deleniti velit numquam dolorem. Itaque et unde enim ut dolorum velit. Fuga tempore suscipit nesciunt aut est cum. Consequatur qui vel eius aut tenetur aliquam. Veritatis accusantium ut illum. Eos iste rerum rerum aperiam rem.

Facilis velit modi voluptatem inventore. Dolores minima nulla velit quis dolor fugit. Quia ut omnis repellat.

Debitis cumque id minima odit nesciunt laudantium inventore. Voluptate voluptas vel et expedita. Molestias voluptas dolores nisi occaecati sint aut. Quia voluptas recusandae et cumque.

Voluptas quia quis quia dolores rerum quia tempore. Est dolor et aperiam facere inventore quas. Praesentium maiores sit nam reprehenderit reprehenderit molestias aliquam non. Pariatur sed non aut voluptatibus consequatur blanditiis iure quidem.

Career Advancement Opportunities

August 2026 Hedge Fund

  • Point72 99.0%
  • D.E. Shaw 98.0%
  • Citadel Investment Group 97.0%
  • AQR Capital Management 96.0%
  • Magnetar Capital 95.0%

Overall Employee Satisfaction

August 2026 Hedge Fund

  • Magnetar Capital 99.0%
  • D.E. Shaw 98.0%
  • Blackstone Group 97.0%
  • Citadel Investment Group 96.0%
  • Two Sigma Investments 94.9%

Professional Growth Opportunities

August 2026 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 98.0%
  • D.E. Shaw 97.1%
  • Citadel Investment Group 96.1%
  • Magnetar Capital 95.1%

Total Avg Compensation

August 2026 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (27) $464
  • Director/MD (11) $372
  • NA (9) $320
  • Engineer/Quant (83) $287
  • 3rd+ Year Associate (26) $284
  • Manager (4) $282
  • 2nd Year Associate (32) $253
  • 1st Year Associate (76) $193
  • Analysts (233) $178
  • Intern/Summer Associate (29) $145
  • Junior Trader (5) $102
  • Intern/Summer Analyst (276) $95
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
kanon's picture
kanon
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
DrApeman's picture
DrApeman
98.9
6
Betsy Massar's picture
Betsy Massar
98.9
7
CompBanker's picture
CompBanker
98.9
8
dosk17's picture
dosk17
98.9
9
GameTheory's picture
GameTheory
98.9
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”