Radley James’ Post

The hedge fund industry is in a heated talent tug-of-war! Goldman's report reveals that multi-manager funds are ensuring a balanced mix of investment and non-investment professionals. But, there's a twist: these platforms are now hiring from each other, often leaving investors to foot the bill for high sign-on packages. With soaring costs, can these funds deliver the returns to match? Read the full article: https://lnkd.in/dtSwDsiD #talent #hedgefunds #hedgefundjobs #equity #asset #trading #technology

📣 Emerging Fee Structures Challenge Traditional '2 and 20' Model in Hedge Fund Industry In a move that defies the broader industry trend towards cost reduction, some key players in the hedge fund space are introducing new types of fees. The traditional '2 and 20' fee structure is undergoing a transformation, with the introduction of 'pass-through' and 'compensation' fees to make up for revenue shortfalls. 🔑 Key Point: The "pass-through" model is enabling multi-strategy funds to hire aggressively. Interestingly, this can sometimes elevate the effective management fee to as high as 6/7%, a significant departure from the conventional 2%. 📈 These new fees are designed to cover operational expenses, including the crucial task of hiring and retaining top-tier talent. 📉 The backdrop to these changes is a challenging environment for hedge funds, marked by a decline in new launches and average returns that lag behind broader market indices. 🤔 The introduction of these new fees is a double-edged sword. While they may help funds cover operational costs and retain talent, they also place an additional burden on investors, particularly when these fees are levied regardless of fund performance. 👀 Investors must scrutinise the value they receive in return for these additional fees. If the returns don't justify the higher costs, a shift in capital allocation could be on the horizon. With the top multi-strategy groups closed to any new outside capital, we've seen a rapid rise of multi-strategy competitors where this additional capital has gone. For more details, read the full article below. #quanttrading #quant #portfoliomanagement #hedgefunds #quantitativeresearch #financialmarkets #quantitativefinance #feestructure #capitalallocation https://lnkd.in/erufpP2A

𝐓𝐡𝐞 𝐭𝐚𝐥𝐞𝐧𝐭 𝐭𝐮𝐠 𝐨𝐟 𝐰𝐚𝐫 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐁𝐚𝐧𝐤𝐬 & 𝐇𝐞𝐝𝐠𝐞 𝐅𝐮𝐧𝐝𝐬 Banks face a growing challenge: hedge funds actively recruiting their top trading talent, as emphasized by Goldman Sachs' CEO, David Solomon, in a recent keynote. 𝐇𝐞𝐚𝐝𝐜𝐨𝐮𝐧𝐭: 𝐇𝐞𝐝𝐠𝐞 𝐅𝐮𝐧𝐝𝐬 𝐯𝐬 𝐁𝐚𝐧𝐤𝐬 Though the hedge fund industry's growth seems stable, there is a surge in large multi-strategy and fixed-income funds, accounting for 20% of industry AUM. Especially significant is the rise of multi-manager funds, which now constitute 25% of industry headcount but only 10% of its AUM. Such funds heavily recruit, with firms like Millennium (5,400 employees) leading the charge. Comparatively, the top 12 banks employ just over 30,000 in sales & trading, suggesting an almost equal average of traders between banks and leading multi-manager funds. 𝐒𝐭𝐚𝐟𝐟𝐢𝐧𝐠 𝐂𝐨𝐬𝐭𝐬 Many Multi-manager funds have adjusted their cost structures from the traditional 2/20 towards a pass-through model, passing on operational costs to clients while retaining a sizable share of the fund's profits. This model supports hiring top talent, often at a premium to bank compensation levels. Despite rising costs and challenges in the hedge fund space, banks' talent acquisition hurdles remain due to various reasons including constraints in bank budgets from increasing regulatory costs. 𝐁𝐚𝐧𝐤 𝐨𝐫 𝐇𝐞𝐝𝐠𝐞 𝐅𝐮𝐧𝐝? While banks grapple with retention strategies, traders considering moving to a hedge funds have to weigh the risks and rewards. Hedge funds, especially multi-manager platforms, have rigorous performance expectations, which can mean job volatility. However, bank trading roles, though potentially less dynamic, usually offer more job stability. At Laz Partners we are working with a number of Tier-1 hedge funds that are hiring sell-side traders and (desk) analysts. If you are considering a hedge fund as your next career move and are interested in having a chat, feel free to send me a DM or e-mail on sven@lazpartners.com.     Article Link: https://lnkd.in/e5_dgaKi

At Laz Partners, we are working with a variety of Macro & Multi-Strategy Hedge funds that are actively hiring in London, New York, and Hong Kong, while also keeping a low profile.   As a result, many of these funds are not likely to be covered by the majority of the search firms in the market. These include recent and future macro & multi-strategy platform launches (multiple B$) that are offering attractive pay-outs and allocations to future PMs and APMs within Macro Futures/Rates/Macro Vol/FX/Equities and Macro Credit.   While some of these firms have a preference towards G10 Macro candidates, given that EM may not be a focus from day 1, there is still an overall appetite for high preforming EM PMs and Traders (including from the sell-side), given a very attractive opportunity set in the months ahead.   In terms of strategy types, we have clients that are interested in both Directional Macro, as well as Macro RV strategies.   If you are a discretionary or systematic Macro PM, APM, or Trader with strong returns (at least $15m-$20m over 2+ years) and/or a high Sharpe, feel free to reach out at amar@lazpartners.com for a confidential discussion, even if you are happy and not actively looking. A couple of our clients would also consider exceptional Macro Strategists/idea generators, however the bar is extremely high and typically there would be a need for a verifiable track record of trade ideas, as well as a strong quantitative background.

Twelve staff exit Walleye including Head of ECM New York-headquartered multi-strategy hedge fund firm Walleye Capital has cut about a dozen positions mainly in its investment team, including Senior Portfolio Manager Michael Martin, who served as Head of Equity Capital Markets, according to a report by Bloomberg. The report cites unnamed sources familiar with the matter as revealing that portfolio managers Lawrence M Hurvich and Jerry Siliverdes who focused on special purpose acquisition companies, have also left the business. Additionally, the closure of Walleye’s Houston office affected two more employees. The departing employees, including two staff impacted by the closure of the firm’s Houston office, represent less than 3% of Walleye’s risk exposure, and the firm considers their related strategies as largely nonessential. However, the firm is planning to appoint a new Head of ECM in due course. In a letter, CEO and CIO Will England wrote: “Given the turnover which Walleye has proactively and positively undertaken over the past 12 months, we are clearly very focused on selection. We are unapologetically pursuing the best individuals we can find to fill the seats in our boat, keeping in mind that the number of seats is fixed.” The multi-strategy Walleye Opportunities Fund, which accounts for around $4.6bn of the firm’s total $6.7bn assets, has a projected net gain of 7.3% to 7.7% for the first seven months of the year, according to preliminary returns seen by Bloomberg. The firm has temporarily paused accepting new commitments for the fund until at least the end of this year. #hedgefund #multistrat #jobcuts

📈 How one hedge fund crushed the market to return 48% in 2023🤑 Boggled to share that the macro hedge fund led by "Tiger cub" Rob Citrone at Discovery Capital Management has made an impressive comeback, reporting a phenomenal 48% return in 2023, according to Bloomberg. This remarkable achievement follows a challenging 2022 when the fund faced a 29% loss. The $1.5 billion fund's success can be attributed to strategic long positions in equities and government bonds across Latin America, US credit, and a mix of long and short positions in financial stocks. This diverse approach has proven resilient, propelling the fund to become one of Wall Street's top performers. Discovery Capital Management has a history of turning adversity into triumph, as demonstrated by its 55% surge in 2020 after a 23% dip in 2019. Last year's success is particularly noteworthy given the turbulent market conditions, including the Federal Reserve's rapid interest rate hikes, a historic Treasury sell-off, and notable events like the March 2023 bank failures. Amidst market boomerangs and a post-November monster rally, Discovery Capital's astute bets have outshone broader market trends. As an analyst, I find the fund's resilience commendable in navigating the complexities of a volatile financial landscape. Kudos to Rob Citrone and the Discovery Capital Management team for steering the fund to new heights! Hit 👍 if you loved it and 🔄 too. Follow Harshil Lahoti for more such finance related content. 🚀🌐 #Finance #Investing #HedgeFunds #MarketPerformance #Resilience #SuccessStory

The Unsung Heroes of Hedge Fund Success: Business Development Execs!! The rise of Business Development professionals in hedge funds has changed the game in talent acquisition. Amid a fierce war for portfolio manager talent, these individuals are the key players in a multimillion-dollar industry, shaping the future of hedge fund growth. The hedge fund industry's once quiet game-changer? Business Development Executives. In what feels like an NFL roster expansion, the hedge fund world has seen a talent explosion, particularly within multimanager funds like Citadel and Millennium. Here's the inside scoop on the power players you don't often hear about: The business development pros. As hedge fund assets and teams have ballooned, the spotlight might be on star portfolio managers and their jaw-dropping salaries. But let’s pivot our gaze to the talent whisperers – these BD execs who work diligently behind the scenes. Their mission? Scouting and nurturing investment talent. Unlike traditional business development roles, which typically aim to expand partnerships and clientele, hedge fund BD teams are laser-focused on assembling elite trading teams – the core of any successful hedge fund. And the stakes have never been higher. With hedge fund staffing increasing by 80% to over 18k since 2019, BD professionals have not only facilitated growth but also managed the soaring expenses that are now under investors' microscopes. Amidst concerns over a "talent bubble" and cost-driven "death spirals," these BD experts continue to be the unsung heroes, navigating the high-pressure environment with a combination of technical expertise and the charisma of a seasoned salesperson. With more than 50 firms in the multimanager space and a continuous inflow of capital, the demand for seasoned BDs is hitting new highs. Seven-figure salaries and the status of a "profit engine" reflect the critical role these pros play. In essence, the business development execs have become the new power figure in hedge funds. As the industry gears up for more growth and evolution, these talent whisperers will undoubtedly be the architects of the future hedge fund landscape. #HedgeFunds #BusinessDevelopment #TalentAcquisition #FinanceTrends #CareerGrowth #InvestmentIndustry

Why do even the most talented aspiring Hedge Fund PMs often struggle to secure roles, despite seemingly successful interviews? The answer might be less straightforward than you think. In my upcoming newsletter, gain exclusive insights from Jason Kennedy, CEO of the Kennedy Group. As a luminary in hedge fund recruitment with over two decades of experience and hundreds of successful placements, Jason will unveil: - Why waiting for the 'right opportunity' can cause you to miss out on PM roles and strategies to access the elusive 'non-advertised' roles. - The critical difference between engaging with a regular headhunter and partnering with a “business coach” to enhance your career prospects. - The journey of Carl, who recently navigated his way to a senior PM position at a top-tier hedge fund. This edition is essential reading for aspiring or current Hedge Fund PMs looking to be better rewarded for their performance. Discover why proactive engagement and strategic pre-planning is crucial. Stay tuned for a deep dive into the world of hedge fund recruitment and the strategies that will move the needle for you. #hedgefunds #portfoliomanager

Arootah offers some helpful tips for recruiters at #hedgefunds that also apply to #privatecapital and #financialservices talent acquisition professionals broadly.

We're excited to offer our peers in the investment community a complimentary guide to launching and scaling a successful hedge fund. This article represents a meticulous compilation of critical steps, tailored to empower managers with practical insights. We're eager to hear your thoughts and feedback, as we hope that this proves to be a valuable resource. https://lnkd.in/eMZAVz7K #FundFront #AlternativeInvestments #AssetManagement #HedgeFunds