Hedge Funds May Shed 10,000 Jobs In ‘08

Oct 17 2008 | 12:01pm ET

As many as one in 15 hedge fund employees could be out of a job by the end of the year, one executive search firm has estimated.

Options Group says that hedge funds have already cut between 3,000 and 5,000 jobs this year, numbers which could double by the end of the year. Hedge funds employ an estimated 150,000 people worldwide. Those losses are a drop in the bucket compared to the bloodbath on Wall Street—the world’s biggest banks and securities firms have slashed 131,766 jobs in the second half of 2008 alone—but it’s a big deal for the hedge fund industry.

“It’s bad out there,” Michael Karp, CEO of New York-based Options Group, told Bloomberg News. “Generating returns is not easy at the moment and as funds look to cut costs, the best way is to let go of people.”

The corollary to such widespread job cuts is, of course, that finding new work is not easy. Karp said his firm is getting almost twice as many hedge fund resumes per day as it did last year, but despite a handful of hiring sprees on the part of a few big names, he said that there are not many jobs to be had.

“While there are interviews going on all the time, there are not many offers,” he told Bloomberg.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.