Since launch every year they have been at the very bottom of the returns of all of the MM platforms. 2021 is no different at +3%. They are known for throwing large pay packages to lure PMs in. Lots of rumors that the firm is still a sh*tshow and obvious nepotism by Gelband hiring his sons to run the various business units.
Any thoughts as to whether there's career risk and worth the large package for a PM seat there? Or better to stick with the Blue chip MMs
| +53 | Do Hedge Funds Value Paper Trading Performance Potential Hires? | 23 | 10h | |
| +48 | Interested to hear from average pod PMs | 13 | 50m | |
| +33 | Junior analyst - what to look for? | 11 | 5d | |
| +32 | Advice on Trading Futures for PA | 7 | 1d | |
| +26 | MM Comp for 2+2 Candidate? | 26 | 7h | |
| +24 | Taula | 11 | 1d | |
| +22 | Pershing Square Valuation | 7 | 3d | |
| +18 | How do I land HF from ER? | 9 | 2d | |
| +12 | Shorting a Merger in all stock deal | 1 | 2d | |
| +12 | Good Substacks? | 5 | 2d |
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.
lol
Found the person that doesn't work in L/S equity
Dude graduated high school class of 2020 already out here offering insights on l/s equity 👏 👏 👏
A fair bit of their pods are focused around FI trading which hasnt been as strong
Only a third of their AUM is in fundamental equity L/S, majority of capital is credit, rates, systemic equities. A bit apples and oranges comparing to mostly equity multi-managers like a Citadel Wellington.
I think they will like throw a $100mm book at anyone with a pulse and make make them trade it in very tight risk limits - have a few acquaintances there now who seam to be doing OK - like guys who know how to make money seam to be doing fine there- but it’s probably a bit harder for the new PMs - the fund is deffinitely more FI focused - there are a bunch of articles from November about rates traders blowing out -I know they are trying to put more emphasis on their equity group (I think they named it westwind) - I have heard it’s a bit of a shit show operationally - but on the flip side very flexible in where they let people work
If you say 100 mio book, what kind of yearly risk allocation would that be roughly? Like 10 mio usd yearly standard deviation?
No it would probably be closer to a 5m drawdown which means around 2.5-3m standard deviation
The 100mm book isn't true at all from my understanding of friends there. Their risk is much more concentrated than other firms.
That comment is more true of the other firms and part of it is just a really competitive labor market with a lot of optimistic analysts who want a chance.
The other part is that it's part of the firm's business model in that they are OK with the vast majority failing as long as they can find a couple to scale up. It's terrible on an individual level but great for the firm.
Agree, the whole $100m premise is badly wrong. I'm pretty sure the avg XP equities book starts with >$500m.
I got the $100mm number from a person that trades rates/macro at exodus so maybe different for equities
Would career risk be higher at EP for a PMs with their own book who don't mess up performance? Any major impact on comp if the overall firm doesn't perform?
Nope, investors take netting risk at MMs
Equity Quant and Equity L/S have been killing it. EP is more rates focused as many mentioned. That's about it.
If/When Equity Quant & L/S go through a rough patch, you'll see the opposite.
Comparing hedge fund returns is usually a bad idea unless they are directly comparable in terms of risks they are taking.
any reason why Exodus over MLP? just seems it's for PM's who want a higher % deal
My understanding is that the big advantage is founder run firm with less management layers to screw you. They tend to stick to deals more and don't change terms.
I heard equity quant infra / data there was pretty terrible, have they turned things around?
Don't know for sure but their equities franchise is down a lot this year I heard, so that would suggest not so hot.
Equity L/S laid off a ton of ppl
Test
Aut dolores provident aliquam at. Facilis corporis possimus veniam. Impedit cumque aliquid commodi itaque voluptas consectetur.
Qui eos molestias minus. Aut distinctio nisi distinctio. Rem tenetur earum odit voluptatum quo id facere. Iste pariatur eveniet cupiditate unde.
Est temporibus inventore aut voluptatum facilis expedita quis natus. Magni blanditiis eos amet et aut quod voluptatibus quidem. Omnis in explicabo nobis harum voluptas voluptatem.
Officia natus quae est id. Optio eum ut nobis voluptatem vero dicta. Corporis praesentium consequatur et doloribus voluptatem illum. Et possimus autem ratione consequuntur ut odit. Nam eum minus placeat ipsa est quidem fuga. Aut perspiciatis voluptatem dolor quia et temporibus. Dolor architecto perferendis rerum.
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...
Nihil recusandae rem maiores commodi consequatur nesciunt voluptatem. Ad sunt et temporibus officiis voluptate aut culpa. Maxime ea quod ut ut esse aut. Quia est consequatur illo tempora omnis placeat sit. Distinctio eveniet tempore cum esse in itaque. Voluptatum distinctio quo officiis labore.