Khronos is $2 billion firm that invests in hedge funds, PE and makes direct public and private investments.

Royal Capital - not sure on this one. Possibly a FoF.

Hunter Global - global equity long/short. Not sure about size of firm.

The fourth one is Davidson Kempner Partners. They are an event fund (risk arb, distressed). Primarily US; some Europe. They manage $4B or so.

Hope this helps.

 

are all considered top tier, best in class HF's in credit/distressed (they are some of the best, if not the best funds in this space). All are very large and have diversified and have very smart people working for them

 

to get into the public side of any of these credit/distressed funds, they are looking for experienced and fairly bright people. They are not looking for the typical top bucket i-banking analyst who is going to KKR/Bstone nor the one who is going to a long/short fund. A lot of these places have a little older group of people, especially on the distressed side. The private side (private debt/PE) of all these places will look for typical analyst/associates from banks

 

napolean,

Thanks for the insight. I come from the secondary side of a mortgage originator, and have been speaking with a few of these firms in regards to their (new) distressed mortgage opportunities funds. Some I have spoken to, and others I have been referred to.

I actually don't come from the typical i-banking background, so maybe that's why they are willing to speak with me.

I guess I should feel honored to even be speaking with them.

Thanks again...

 

if you're talented, they'll hire you, didn't mean to imply that you wouldn't have a chance. These kind of places are always on the lookout for talent from all places, sounds like you have the right background for distressed subprime, good luck

 
Best Response

I would agree with Napoleon that most of the names you mentioned (except one) are top tier distressed/credit guys. I know Marathon the best and have looked at the distressed subprime fund they are launching as a potential inv. opp for clients of my firm. These guys have a lot of experience in the space and seem to have the tools necessary to analyze potential opportunities. I think they will likely be more successful than most wrt distressed subprime.

I don't know MHR very well but I believe they are a distressed PE shop. Having said this, I would be interested to know how much experience they have in analyzing situations in the subprime/ABS/MBS markets as simply having distressed experience doesn't cut it for understanding assets in collateral pools of these transactions.

Silver Point has a strong reputation but I have never met with them. The same goes for Angelo, Gordon. Again, though, both of these groups have significant expertise in distressed corporate situations so I would encourage you to ask about direct experience in the structured finance markets.

I have spoken to Schultze in the past and was not that impressed. They also recently settled with the SEC for certain violations. Do an internet search and you can probably find out more about this situation.

 

Thanks for your input, most of what you both had to say is right in line with what I have heard and what I have observed personally. Nonetheless, I appreciate the opinions, it always helps to hear someone else's opinion.

I actually had heard about schultze's problems, buy i'm not sure that they are are concern going forward.

Thanks again...

 

Clarus is not a group that I have met before but they are a value oriented, equity long/short shop. I believe they are pretty small ($150-200M) in terms of AUM. The firm was started in 2003 (I think) and has produced good risk adjusted returns. They are based in NY.

I don't know Bridgeworth but from an internet search I found a website for them. www.bridgeworth.com. They are a FoF but I don't know how big they are.

Highbridge is a group that I know and have met in the past. You are correct about the tie up with JPM. JPM bought the business a few years ago and has since grown it into one of the largest hedge fund groups ($30 billion AUM). They run a variety of funds but the bulk of the assets are in a multistrat vehicle. It has done ok but was too heavy into convert arb in 2004-2005 which hurt performance. Since then they have added additional strategies to the portfolio to diversify exposure. 2006 was a good year but it remains to be seen whether they can repeat going forward. Notably, they have a big slug of stat arb which was I'm sure didn't help the Fund's performance in August. HB is a low risk multistrat but there are likely better out there wrt performance.

 

fundamental shops have typically seen diminishing returns as their assets grow much past 10bn (obviously not a ton of data points). HB had a great 06, and I think are doing ok this year despite the stat arb fund decline, and they get a great look at info from JPM (especially on private side, they are raising a fairly large PE side pocket by HF standards). Will remain to see if the firm as a whole can generate returns given its massive growth over the last 3 years, Farallon and OZ are good examples of huge fundamental shops that have kept returns up at reasonable rates while growing assets (although, once again, returns across the firm have declined over time). If anything, HB is probably at least a very good platform to get trained and jump to a smaller place

 

Polygon is a global multistrategy shop based in London (they have offices in the US and Asia too) that focuses primarily on event driven and credit investing. It was started a few years ago by Reade Griffith and two other industry vets. Reade formerly ran the European event business for Citadel. They manage close to $8B. Performance has been solid since inception.

KBC runs a variety of products but I don't know how big they are overall. They had a bunch of funds in the credit and converts space that had a rough time in 2005 and 2006.

I don't know Aspect and Fortune but will check around and post what I find.

 

Fortune Asset Management is a group based in London that does hedge fund research and advisory work. I believe they may run some fund of hedge funds products. I have never met them and don't know exact AUM but I think it probably around $1B.

Aspect is another group based in London. As mentioned in my earlier post, I don't know these guys and have never met them. However, I think they have close to $3B in AUM and appear to run a number of funds. I think they are a systematic quant manager and focus on the typcial areas of equities, fixed income, futures and currencies. They trade in markets across the globe.

 

Cobalt is a NY-based fund run by Wayne Cooperman that was started in the mid-90s. Cooperman is a deep value equity investor. The firm's approach is fundamentally driven and bottom up with a core focus on quality companies with predicatable cash flow, high returns on capital and management that are receptive to dialogue with shareholders. I don't know exact figures but I believe they manage $1B+ and have delivered returns of 25%+ p.a. since inception. Wayne Cooperman also happens to be the son of Lee Cooperman, one of the legends of the HF industry. Lee's fund is called Omega Advisors and manages over $5B.

 

I have never met either of these groups as my focus in more on event and relative value strategies. However, I have the following info to share.

Alkeon is a NY-based group that focuses on equity long/short. The team running the Funds came from CIBC Oppenheimer. I receive monthly updates from them but have never spoken with anyone at the firm. In early 2006, they were managing around $700M. It looks like they run with a long bias and have a number of funds, most of which have a technology focus. Performance in 2007 has been very strong but I don't know the drivers.

Clovis is another NY-based equity long/short firm. I think they manage in excess of $1B and focus on small and mid-cap US stocks. They are bottom up, fundamental stock pickers.

 

There are actually two groups called Endurance. One is a FoF otuside of Chicago that doesn't look to big. The other is outside of Chicago and is a short term focused, macro oriented fund that invests in global currencies and large cap US equities and to a lesser extent on fixed income and equity index futures. This group also appears to have small AUM. I'm not even sure this group is still in business.

 

I don't know these guys but here is what I have found.

Cumberland Associates LLC, founded in 1970, is a fundamentally driven long/short equity manager. It focus on intense “bottom-up” research of companies domiciled predominantly in the United States. It seeks out securities that are significantly mispriced on an EPS, cash flow, and/or private market value basis. They believe that “value” and “growth” valuation concepts are reconcilable. They quantify the reasonable current value of businesses based on future net cash flows discounted at an appropriate cost of capital and exploit large differentials between price and value. The firm managed around $1.8B as of late 2005.

 

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