If You Could Work At Any Hedge Fund...

joppo's picture
Rank: Senior Baboon | 210

There was a similar post from 10 years ago but wanted to get some up to date responses.

If You Could Work At Any Hedge Fund. Which one would it be and why?

Comments (104)

Feb 15, 2020

Soros Fund Management in the 90s because old school global macro is so sick.

    • 6
Feb 18, 2020

This is the correct answer but replace soros with just being in the game back then. The one man hedge fund doing the same thing was more possible. Bigger edges. Didn't need the expensive infrastructure support. You could self fund to a great extent by doing old school market making shit while using the profits for that to place your macro bets.

Array
    • 1
  • VP in VC
Feb 18, 2020

Can you say more? I don't know a lot about old school global macro, any description or links to books / articles would be appreciated, thanks!

Feb 18, 2020

Reading up on Soros' Quantum Fund which was the fund that "broke the Bank of England" would be a good start

Feb 15, 2020

Mine ,because it's mine

    • 3
Feb 15, 2020

well bully for you then.

how big it is?

Thank you for your interest in the 2020 Investment Banking Full-time Analyst Programme (London) at JPMorgan Chase. After a thorough review of your application, we regret to inform you that we are unable to move forward with your candidacy at this time.

Feb 18, 2020

This in response to @DOW30k . +1 SB

Feb 19, 2020

Says the guy who's trying to get into Alabama IBs

    • 6
Feb 15, 2020

Probably citadel. Just because they produce a shit ton of PMs who eventually go out on their own.

    • 1
    • 1
Feb 16, 2020

If that is your criterion, Tiger Management is miles ahead of Citadel

    • 4
    • 1
Feb 16, 2020

Renaissance Technologies

    • 1
Feb 17, 2020

WSO's COO (Chief Operating Orangutan) | My Linkedin

Feb 16, 2020

Long-Term Capital Management

    • 16
Funniest
  • Analyst 1 in Other
Feb 16, 2020

Axe Capital

    • 32
Feb 19, 2020

Beat me to it.

No pain no game.

    • 1
Feb 17, 2020

Small cap funds who are putting up insane IRRs and most people don't know about them

    • 4
  • Analyst 3+ in HF - EquityHedge
Feb 17, 2020

Examples? Most of the ones I know are probably implicitly betting on the size, value factors. If you strip these out they may not be that good on risk-adjusted basis.

    • 1
Feb 17, 2020

How would size and value factor bets yield insane IRRs? Aren't those premiums like 50-100 bps?

    • 1
  • Quant in HF - Other
Feb 17, 2020

Are you so sure about "unknown" funds with insane IRR? They are probably capped in capacity or spend insane money on infrastructure or they tolerate big drawdowns. In the first two cases I do not see any advantages.

    • 2
Feb 17, 2020

Its #1 and #3. I know a few small guys managing $10-50mm and some have great IRRs. They do micro and nano cap with extreme concentration. Naturally, as you said, they have to deal with capacity constraints and drawdowns and thus have to focus on HNW client base rather than institutions. It can be a rough life, especially doing all the fund administration with limited help. Need great, not good, returns to enjoy it.

    • 1
  • Quant in HF - Other
Feb 17, 2020

Interesting, what is payout be like if they regulary have double-digit (20+%) drawdowns? As far as I understand, HFTs or MLPs are able to pay such a big payouts due to the low risk associated with strategies (HFTs have super high SR, MLPs have 0 exposure to many factors). And I think it balances itself dollar-wise -- they create high returns on a small capital with enormous risks, while MLP guy yields "just" 2-5 percent on couple of billions orthogonally to many risks.

Also, would be happy to hear some insight on Quadrature capital -- they yield great returns with great SR on a great capital base. ex DEShaw guys.

Feb 17, 2020

Suvretta Capital Management = friends left citadel for this fund

Millenium = relative who brought in over 15mm in 2016 as a PM her

What concert costs 45 cents? 50 Cent feat. Nickelback.

    • 3
  • Analyst 3+ in HF - EquityHedge
Feb 18, 2020

But more important question, is are they still there and how did they do post 2016? Its no good having one great year then blowing out the next. Also they couldn't have cashed out the 15MM same year.

Feb 18, 2020

Why couldn't he / she cashed in 15m in the same / one year?

    • 1
  • Analyst 2 in HF - EquityHedge
Feb 20, 2020

L O L to Suvretta even remotely mentioned here.

    • 1
Feb 17, 2020

Obviously Rentech + Citadel are top contenders. But would have loved to work at GETCO in 2009 or Caxton before 2010.

Feb 18, 2020

MSMB Capital Management - Martin Shkreli

    • 6
Feb 18, 2020

FREE SHKRELI!!

Feb 22, 2020

Yeah, we can't get our hands on him if he's in prison.

Feb 18, 2020

Does anyone have any insight on Brigade Capital Management?

    • 1
Feb 21, 2020

Stellar credit fund. They do hy/performing in addition to distressed, long/short credit and equity. To my knowledge, analysts are industry focused investing for different funds across the capital structure for their names.

    • 2
Feb 18, 2020

I'd like to work for Paulson as an IR person from 2008-2012. collect fat bonuses for new AUM and then peace the fuck out when redemptions start because he basically got lucky once

    • 2
Feb 18, 2020
thebrofessor:

I'd like to work for Paulson as an IR person from 2008-2012. collect fat bonuses for new AUM and then peace the fuck out when redemptions start because he basically got lucky once

Curious where you see the future of IR? Do you think it is still a great long-term career? Is IR worth it after undergrad? Do know what the starting base is? How about the bonuses?

    • 1
Feb 18, 2020

I don't think it requires a sense for sarcasm, so you should be fine.

    • 1
Feb 19, 2020

I'm not in IR, I have no idea. as the below guy said, that was sarcasm, sorry

Feb 18, 2020

Definitely at one of the Tiger Cubs' fund - any will do

Feb 19, 2020

Melvin Capital Management. 25 person shop each analyst made well over 5-10mm last 3/4 years.

Feb 19, 2020

Lol is this actually true? Hard to believe everyone is pulling in that much..

Feb 19, 2020

Looked at some of Melvin's positions, Seem like they do large cap tech, consumer, etc. Not sure how they're differentiating

Most Helpful
Feb 19, 2020

You serious? In this business you "differentiate" yourself by posting great returns, not by owning exotic names or sectors.

    • 7
Feb 20, 2020

No way everyone is pulling in that much. Maybe if all the profits were split evenly but it's never that way...

Feb 20, 2020

they had 850mm in fees. Gabe prob keeps 60-70%. I actually know personally he pays his secretary who was with him at sac 1% of the carry. she made 8mm last year. each analyst pulled at least 5mm unless their alpha was atrocious or 100% based on gabes calls.

    • 1
Feb 19, 2020

SAC Capital all day.

    • 1
Feb 19, 2020

i would work at Elliot management buying distressed debt and make them to agree to the terms and additions.

"It's okay, I'll see you on the other side"

Feb 20, 2020

It might take 15 years, but it'll get done!

  • Analyst 3+ in HF - EquityHedge
Feb 20, 2020

perceptive

    • 1
Feb 21, 2020

agree

Array

Feb 20, 2020

Appaloosa Management, small shop with great returns you know the bonuses are big as hell.

    • 2
Feb 20, 2020

TCI
$30bn+ EuM with <10 people, founder made $1.8bn last year alone (fund up +41%).

    • 1
Feb 22, 2020

coincidence that he decided to cut off the charitable obligation to TCI a few years before these monster returns? i think not. on a more serious note, i had no idea TCI was that lean, was always under the impression that they'd have an investment team of 30+. impressive year from them given their gargantuan size

Array

Feb 23, 2020

I suppose he cut off the charitable obligation to make up for his $530m divorce settlement - 2018 should have helped with that..

Feb 20, 2020

Very telling about the industry that half these responses are about funds in the past.

    • 2
Feb 29, 2020

Good catch. Btw do you know of any commodity based hedge funds that are still around? Most have shut down over the last few years is what I've heard.

Feb 29, 2020

Strictly commodities-wise, Ospraie is probably the highest profile one still around. There is Andurand on the oil side, but you hear about some sickening loss of theirs every single time oil goes down.

The multi-managers and old-school macro funds also all run commodity risk.

Feb 20, 2020

I am surprised no has mentioned pershing square

Array

    • 2
Feb 21, 2020

Not at all. I wouldn't want to work for Ackman.

    • 1
Feb 21, 2020

Why?

Array

Feb 21, 2020

Renaissance Technologies on their Medallion Fund.

If not them then likely, Citadel or Two Sigma.

Feb 21, 2020

Princeton/Newport Partners or Renaissance. Thorpe and Simons are the best in the business. Would also love to spend time at Bridgewater just to experience the culture, would definitely be interesting.

They're minerals, Marie!

Feb 21, 2020

Rentech for sure. Brilliantly managed.

Feb 21, 2020

A small fund full of independent thinkers, located <10 minutes from my house, with an extremely broad mandate, where there isn't a single greedy person, everyone is competent, and each person likes their personal life more than their work life. Fancy detailed models and presentations are non-existent.

A man can dream.

Feb 22, 2020

AXE CAPITAL!!!

(or RenCap Medallion fund if we're not accepting fantasy HFs)

  • Quant in HF - Other
Feb 26, 2020

"RenCap" is an investment bank from Russia, it does not have a medallion entity.

What you probably mean is RenTec, which is probably a good place to work :)

Feb 25, 2020

Fortress Macro Fund

Feb 29, 2020

I don't care for public equities investing or the nuances which come with it, but I'd say I'm probably inclined to a model like Elliot. Not sure how associates/analysts there allocate their work across activist/credit/ls/pe strats but I like the idea of having my fingers in all of those. But again, not sure if that's how it works there

  • Research Associate in HF - Event
Mar 2, 2020
Comment
Mar 2, 2020
Comment
Life's too short to smoke cheap cigars.
Mar 9, 2020