Why PE expereince in valued at a HF, especially L/S equity funds

When hedge funds are doing recruiting, some of them, espeically the traditional L/S equity funds are specifically looking for candidates with prior PE experience.

Other than the technical and modeling skill in PE that is mostly transferrable, what other aspect of the PE experience does L/S HF value? It can't be technical/modeling skill only as many banking analysts are pretty good at modeling too.

Any thoughts on this?

Comments (6)

 
6/13/15
  • fix spelling errors in your title, it's like sending a pitch book to a client with the wrong company name on it
  • PE teaches you to do due dilligence on a deeper level than banking which is valued at fundamental funds
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6/13/15
SpaceMarine:

- fix spelling errors in your title, it's like sending a pitch book to a client with the wrong company name on it

- PE teaches you to do due dilligence on a deeper level than banking which is valued at fundamental funds

  • No, it's really not, you hardo.
 
6/13/15

Because some HFs can't be bothered to teach banking analysts how to unlearn all the bad habits they pick up in banking. There's also the idea that PE supposedly trains analysts to get into an investor mindset (although I'm not sure if I fully agree with that).

 
6/14/15

What are some of the "bad habits" analysts usually learn in banking?

 
6/14/15

It is another form of filtering/signal value.

 
6/14/15

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