Activist hedge funds: comp, hours, recruiting
Hello all. I'm an incoming analyst at a strong BB group. Very interested in joining an activist hedge fund. There's very limited info on this site, and I just wanted to learn more.
- What's comp look like?
- How are the hours?
- Who are the top headhunters?
- Is it possible to go straight from IB to a strong shop? Or would I need 2 years at a MF/UMM first?
- Job stability? Do people get the boot in HF strategies?
Thanks.
Hey bloomberg_jr, I think you deserve a response...heck, everyone does. We're listening, sorry about the delay ...my best guess at places on WSO that could help:
You're welcome.
In a similar situation and also interested
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If you're at a BB in M&A or coverage then you've got as a good a shot as anyone. I came from BB coverage. I would imagine Lev Fin background is fine as well.
Stability is no different from L/S or other event driven strategies in my opinion, meaning the answer, like most things, is it depends. If you're a good analyst and the fund does well, then you should be able to stick around unless you're being hired under the pretense that your role will be 2-3 years and out.
I wasn't seeking out an activist fund when I was coming out of IBD, and I wouldn't recommend narrowing your search to said funds when you recruit either. I mentioned I'd be interested in it to every HH I met with (along with L/S, credit, and other event-driven equity) and this role happened to materialize.
Happy to answer additional questions as appropriate.
Hi, I'm currently interviewing largely for private equity, but an activist opportunity may present itself, can I PM you?
Hey, could I PM?
Have u seen anyone move from a L/S fund to activist? Or have any insight on how one might go about doing that?
Analyst at a $3B+ activist HF here. I'll take a stab at these questions.
Comp is very similar to any L/S of equal size. Since many of the positions are 2-3 year holds, the bonuses tend to be more lumpy unless you're at a bigger fund.
Hours also comparable to L/S. I work maybe 70-80 hours in a busy week, closer to 50 in the summer.
I went from IB to UMM PE to my current fund. I would say this path is more common than coming from a L/S HF or straight from IB. IMO, this is due to how activists think and what strategies we employ. 2-3 year MOIC & IRR is far more important than what 3Q23 EBITDA will be. We recently hired a junior analyst, and I only considered people who did 2 years of IB + 2 years of UMM/MF PE. L/S people don't do terribly well, and LO folks are too risk-averse.
Activist funds tend to keep the number of heads small, which means they can be less stable. The fundraising cycle dictates the job stability. Once a founder retires, your stability will get significantly worse (i.e. JANA). Joining a new activist fund can be quite a risk as well. The best funds have permanent or semi-permanent capital and offer stability as long as performance stays high (i.e. Elliott, Icahn).
Headhunters can vary but the usual suspects are CPI, Oxbridge, SG, Robinson Judson, Lawbrook, etc.
Hope this helps.
Thanks, could you help elaborate the point about long only investors being more risk-averse?
Would you look at a candidate from credit backgrounds (special sits / opportunistic credit shops)?
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