Why PE > HF?
Sorry for the vague question, just trying to learn. Understand that privates are typically more LT vs publics give immediate feedback and you’re always competing directly with the market. Possible that privates are more operations > alpha focused, but then you have activist HFs so feel like the point is moot.
Other than that, I think the TLDR Q is: What sort of businesses would a HF invest in that a PE firm might not, even if it’s a strong, undervalued business? Why? What sort of investor would be drawn to either side?
You can easily google/claude this…
Right. But figured it'd be best to get a more nuanced, less generic perspective from professionals in the industry based on how they may have made their decision and what they've come to find over their career. The above reasons are what resonated with me upon my own surface level (Claude / Chat) research
Clearly you couldn’t be bothered to do 10 seconds of research as its been well covered by numerous threads
https://www.wallstreetoasis.com/forum/hedge-fund/if-hf-make-so-much-money-why-pe
https://www.wallstreetoasis.com/forum/hedge-fund/why-did-you-choose-hf-…
https://www.wallstreetoasis.com/forum/hedge-fund/choosing-hf-over-pe
Appreciate it. Think this is the great and bad side of this forum. We can ask "stupid" Qs without hesitation, but obviously understand that it can get annoying for those looking to provide help beyond what's already available. Regardless, thanks for opening my eyes and will bear in mind moving forward
Look up Stanley Druckenmiller’s interview — he talks about having to go to the bathroom to throw up during drawdowns. That’s a start
Friction. Own a company in PE? It’ll be months till you get out. AM/HF it can be as fast as your trader moves. Does not answer the question directly, but something that is imperative to think about. Also, investable universe. If you work in PE, you can only buy companies up to a certain size, even that the largest funds. In HF you can buy virtually anything and do so via a number of instruments.
I work in PE because I couldn't get into a HF
Sapiente ratione molestiae aliquid impedit iusto. Itaque minus cum corporis minima eum nulla consequatur. Tempora id ea similique aliquid nam cumque. Quo enim sed sed. Et modi accusantium omnis voluptas omnis.
Aut saepe quae consequatur veritatis doloribus quaerat et molestias. Officiis veniam veritatis et omnis aspernatur a totam. Sed dolor quis recusandae quisquam laudantium.
Quaerat qui sit blanditiis velit. Error ut consequuntur vitae ipsam dolor ut qui unde.
Commodi tenetur quo dolorem labore. Incidunt soluta doloremque ducimus unde doloribus sequi culpa. Rem omnis consequuntur aliquid labore iusto velit quia. Dicta qui aut sed ut esse voluptas.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...