Money Stuff: The Podcast Loads of Vultures: Funds, Agents, Bets
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Oct 3, 2025 Delve into the winding challenges faced by smaller multistrategy hedge funds against giants like Citadel. Explore the unique dynamics between headhunters and agents for hedge fund managers. Discover how the market is evolving with the emergence of AI researcher agents. The discussion also touches on Kalshi's innovative entry into sports betting and whether same-game parlays truly qualify as prediction markets. Predictions fly, including the likely arrival of a football betting ETF, reshaping the wagering landscape.
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Scale Is The Competitive Edge
- Multi-strategy hedge funds now favor very large platforms that can aggregate top talent and capital.
- Smaller multi-strat firms struggle to compete with giants like Millennium and Citadel for people and assets.
Pass-Throughs Drive Platform Economics
- Modern pod shops operate like hybrids between hedge funds and funds of funds, using pass-throughs to pay portfolio managers.
- High pass-through and incentive pay make economics hard for smaller platforms without scale.
Big Firms Sift Talent Away
- Large multi-strategy funds act as a talent sieve, identifying and keeping top portfolio managers.
- That selection power makes it very hard for smaller firms to retain the best people.