Best L/S Credit HF Seats
Starting off in public credit, and hoping to transition to a l/s credit hf?
What are the main (or not as well-known) long/short credit seats single-managers and multi-managers in London?
Im not familiar with distressed debt / special situations; if anyone could shine some light on what area around l/s credit is like compared to distressed debt / special situations?
Only found a handful of people on linkedin that is in l/s credit, which makes me wonder if there are opportunities there.
Bump for better visibility!
Bump, wondering the same
I would put Apollo and Diameter in a class of their own. They have the only scaled credit HFs left that actually generate attractive returns (10%+ net, 2-3+ sharpe).
Lmao, prolly the only person that thinks working in diameter is the place to be
Curious, what makes you say that about diameter? I heard they were a really good fund if you wanted to do multi strategy credit
Apollo Credit is probably the only scaled shop to generate <1x MOIC on a mid-2010s vintage (bull market in rates). It's not a good business and those returns are not accurate. Most of the lore comes out of the GFC when PE created a separate fund to load up on Lyondell.
You are correct but are thinking of the old Ted Goldthorpe group which suffered losses, was unable to raise a successor fund, and was eventually folded into the newly-launched "Hybrid Value" platform. I am talking about the subsequent and current team formed by John Zito which manages the Credit Strategies HF and other pockets of PE-style drawdown funds and permanent capital. That team is now branded "Opportunistic Credit" and runs ~$15BN with a team of ~10. Page 8 from this link corroborates the returns I quoted: 5-year Sharpe ratio of 2.9 and Net IRR of 9.7% (i.e. implying 13-14% Gross).
How is King Street in this space? Citadel from what I've heard has a fixed income team too, does it fall in the same space or something else?
Also interested in how would a hedge fund (e.g. citadel) perform in fixed income credit compared to large PE houses (e.g. Apollo, BX, Ares etc) with credit arms and credit focused fund (e.g. goldentree, king street)
Is it the case that the large PE houses with credit arms and credit focused funds specialises in credit SS / DD and a firm like citadel deals with L/S credit?
Also, would comp for L/S credit exceed SS in credit / distressed debt?
For long/short I would add Sona Asset Management, Ironshield, Tresidor, Pictet (runs HF credit teams out of London, not Geneva), plus all the pods (Millenium, Citadel, Balyasny, Point72, ExodusPoint and Brevan) all run L/S credit strategies. You will find a lot more "event driven" funds than pure L/S funds in London.
Is event driven the same as special situations?
Which is the same as opportunistic at certain firms, say oak tree?
Do you know what comp would be like at those L/S credit firms for analysts with 2-5 YOE, all the way up to PM / partner vs PE Credit arms like apollo.
Silver Point is planning to expand in London. Think bbg listed a hire or two there earlier this year.
Hey do you happen to know if they’ll be looking for analysts / juniors soon?
SP Finance or the HF?
Honestly - if you are good at it - flipping new issue at one of the pods
why?
High sharp ratio - get large allocations of hot new issue sell it day of or shortly there after for relatively risk less profit
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