Deutsche Bank CFO: Hedge Funds Attracting Bankers, Will Do Best Post-Crisis

Apr 26 2013 | 10:18am ET

Hedge funds are poised to be the big beneficiaries of the fallout from the financial crisis and the economic recovery—at the expense of banks—a top Deutsche Bank executive said.

CFO Stefan Krause told a Berlin conference yesterday that hedge funds are both luring banks' best talent with promises of better pay and will probably do best, performance-wise, during the recovery. Krause blamed new regulations for the brain-drain to hedge funds, including stricter capital requirements and other rules forcing banks to quit some business, and new bonus limits that apply to banks.

Krause said most bankers who leave his firm go to hedge funds.

"Our business is people-contingent and you'll never be able to pay competitively," he said. "What you can do is structure your pay differently so it's longer-term oriented."

Those bankers who do defect to hedge funds are likely to enjoy the fruits of their new labors, Krause added.

"There are businesses, based on our capital regulation, we'll not be able to do," he said. "Hedge funds will be able to. If I had to bet who is going to benefit the most post-crisis from the asset appreciation you have coming, then certainly hedge funds."


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.