Details on Large Tiger Cubs?

Does anyone have details on some of the large Tiger Cubs (specifically Lone Pine, Viking, Coatue, Maverick) in terms of the experience analysts have on their public equities teams and regarding some of the topics below?

  • Any insights into why top performing megafund PE associates often leave places like Apollo/BX/etc. to try to join Tiger Cubs? Is it due to pay and lifestyle both being better, or more due to desire to focus on investing and less process-related work?
  • How does progression to Senior Analyst and PM compare to multimanager funds like Citadel and Millennium?
  • How often do analysts actually receive the large bonuses that we often associate with high-performing hedge funds?
  • Is culture usually as "sharp-elbowed" at Tiger Cubs compared to some megafund PE firms (asking given where many of the analysts are coming from)?
  • How does turnover look at these types of funds? Do people usually leave due to performance issues or due to personal choices?

Any info that you have heard and/or know would be helpful!

 

Each of those funds you mentioned are all totally different from each other and the answers to each of your questions will vary wildly for each fund.

But to keep it simple, analysts go to these places (and get hired by them) and stay there because they genuinely love investing. And generally speaking, if an analyst can perform well at a place like that and stay for a number of years, they are going to make a lot of money - much more than one could make in PE at a similar age.

 

Any ballpark guesses? I know HF comp is directly tied to fund performance, but I thought that VPs at MFs start getting noticeable pay spikes in carry. On average, would an analyst who exited MF to join one of the top HFs (average year) earn more than if they stayed at a MF and received the VP promote? 

 

People leave pe because they want to pick stocks and analyze businesses, not do deals.  Or because they think lifestyle is better, but in reality that depends on which fund and how good you are at making money and dealing mentally with daily mark to market.  And some purely because of prestige and higher aum/head, which is unfortunate, because it leads to a bunch of wrong type of people at these firms in junior/middle analyst ranks who aren’t risk takers and just amplify their bosses and friends ideas instead of challenging them or generating their own original thinking.

 

Summary of what I remember, Viking is set up as a pod shop with ~ 10 PMs that run their own sector with low leverage. Coatue is run by the top few guys and the analysts don't have the chance to move up and manage money, more for a 2 year analyst stint. Maverick has a value tilt which has caused them to underperform and shrink over the last decade. Lone Pine is used to be run by 1 PM then 4 and now 3, each run their sectors but the book is cohesive and not run independently. 

 

This is the point.  At viking everyone gets a shot at pm if their performance warrants.  A few pms run big books and separate teams, and some are really senior analysts who also get a credit line or small book.

Coatue is single pm.  Don’t think most analysts have all that much autonomy even.

Lone pine has a few pms, but they collaborate on a single book.  That structure was more of a one-off succession plan for a single manager firm in spirit, not a defined path for other senior analysts becoming pms.  But then senior analyst at lone pine can be a better gig than a pm almost anywhere else, depending on your priorities.  Just not if you have the bug and need to run money.

 

At Lone Pine, does the MD title refer to the PMs you're talking about, or senior analysts? Also can you shed some light on how being a senior analyst at Lone Pine could be better than being a PM anywhere else? I read a Barrons article about Lone Pine, and it basically said how Lone Pine has been one of the highest performing HFs of all time, and how it's a wonderful place to work. Culture seems incredible and highly encouraging, do you know anything about comp numbers?

 
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