Hedge Funds Add In-House Recruiting Staff

Sep 20 2013 | 9:50am ET

The easy days of poaching trading talent from investment banks is over—and hedge funds are adapting with a new focus on hiring.

As banks close their proprietary trading desks and spin-off their in-house hedge funds, managers no longer have a deep pool of talent to siphon from, Financial News reports. So they've begun to build an infrastructure for seeking out and luring talent by adding business-development staff.

"In the past, the bigger firms had an easy time picking off talent from bank proprietary-trading desks," a partner at a large hedge fund told FN. "That has a half-life. The pickings aren't as rich as they once were and hiring is becoming more competitive."

What's more, sifting through those pickings can be onerous, with large hedge funds receiving thousands of résumés each year. And given the high cost of headhunting—about 25% of a portfolio manager's first-year salary, which can reach as much as US$300,000 for a senior manager—some hedge funds are taking recruiting in-house.

Among the firms adding business-development executives are Arrowgrass Capital Partners, Millennium Management and Polygon Global Partners.


Lifestyle

Survey: Wall Street Banks Still Top Silicon Valley, Hedge Funds for Freshly-Minted MBAs

Jun 21 2016 | 9:01pm ET

Contrary to concerns that Wall Street isn't as appealing to new graduates as it...

Guest Contributor

The Future of the Blockchain in Financial Services Communications

Jun 17 2016 | 1:05pm ET

Over the past year, a large portion of the financial services industry has awakened...