What would be possible exits from a HY buyside position?

Basically the title. Where could a person in a junior (analyst) role who analyzes mostly HY credits (think of places like Bain Credit, Apollo, Blackstone Credit) potentially exit to? Specifcally, what type, if any, hedge funds do you think would be interested in this type of background? Would distressed be a possibility?

 
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Loan-to-own and PE styled distressed shops probably not on the cards (not impossible but preference is for restructuring experience) so your best shot would be for event-driven HFs that focus on public credit. You could also look at long-only funds that are more concentrated (say running a fund with 25-30 positions) and are benchmark agnostic. CCC's yielding sub 7% in USD so I can understand your desire to seek something a bit more interesting!

 

Yes, all good examples, and all tough to get a seat at. Question is do you want to just do credit or would you be open to looking across the capital structure at equities as well. Personally I would prefer to be in a cross-capital structure seat as the opportunity set is just bigger but to each their own.

 

GoldenTree is probably the most likely to hire someone from a HY shop, and then you could try to internally pivot. It's not easy to get into a fund like Baupost or Silver Point without experience in distressed (and potentially equities), and Third Point's credit team simply doesn't hire frequently. You'll have to cast a wide wide net.

 

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