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.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR