Hi,
Was just looking for details on Melvin Capital’s strategy/setup. My interest was sparked by their investor presentation:
https://uspto.report/TM/86247479/SOU2015031817155…
Okay, so my Q’s are:
* What’s their gross exposure usually running at?
* Are they market neutral?
* The investor presentation is quite generic. What do you think their edge is? I know Plotkin had a rep for using alt data early on...
Thanks
| +28 | Would you work at this distressed fund? | 6 | 1d |
| +21 | Choosing a Seat in an AI World | 6 | 9h |
| +21 | How much of success in this career is just luck | 1 | 1d |
| +14 | Feeling unqualified for new job | 5 | 1d |
| +13 | Interview at Macro HF , what should I expect? | 3 | 2d |
| +12 | SM HF to LO as a junior? | 4 | 2d |
| +9 | At what point is it no longer luck | 0 | 2h |
| +9 | Hedge Fund Sector Advice | 4 | 17h |
| +7 | Covering less deployed sector | 2 | 1d |
| +6 | Data science at SM | 1 | 1h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
They're not mkt neutral, and I'm not sure abt the gross exposure. Edge? I wouldn't really call it an edge: buy secular winners, short losers/incumbents. That's a strategy that just works. Special sits (look @ event driven funds...) and value (ppl like Greenlight...) guys ignore this and it's probably why their performance has been pretty shitty. They over complicate it, and Melvin has taken advantage of that. I guess you can call simplicity and anti-contrarianism Melvin's edge. Consumer/tech has crushed it for the past few years, just look @ funds like Light Street and Melvin, they've dominated. Strategy works until short book implodes like it did for those 2 funds this year. They're also really big on modeling, bigger than most shops I would imagine, so yeah that + alt data could also be their edge. Thanks for sharing that presentation -- I have never seen a HF place such a high emphasis on DCFs...
Official 6 day week, analysts work hard. Chill office, frat vibes. Supposedly they pay $1mm (and multiples of that in their 40% years for sector heads/senior analysts) but take that with a grain of salt because I heard that on WSO (can anyone verify?).
-
Shut up Ben
Okay. Removed
Voluptatibus numquam quisquam voluptatem rerum dolores cupiditate. Inventore non ut soluta modi.
Quia et facere cum voluptas. Non dolorem voluptatum aut. Modi nesciunt consequatur nam dolor totam quis laborum.
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...
Nam minima blanditiis error iste possimus iusto molestias. Est accusantium voluptates sit qui ducimus mollitia corporis. Inventore delectus rerum omnis dolor et laborum corporis amet. Sit et dolores aliquid amet quaerat a quam. Et enim explicabo ratione reiciendis omnis.
Libero accusantium possimus qui laboriosam. Reiciendis consequatur dolore aut voluptas laudantium. Quia voluptas esse quaerat. Molestiae itaque molestiae deleniti. Quisquam debitis natus est aut aut. Doloremque eos saepe est impedit suscipit nostrum harum non.
Rerum deleniti alias blanditiis voluptatem mollitia corrupti. Alias sit et perspiciatis. Iure ut labore non et.