eFinancialCareers

The old cliché another day another dollar seems to be one that doesn’t apply to my new role. It’s been just over a week and I’m yet to deal with any risk-related disasters. It’s going to require patience, but I do at least have the space to investigate other opportunities. I’ve had a number of conversations with people I’ve worked with who are in the midst of “setting up a fund.”... Read more

So you want to make a packet working as a hedge fund trader? Just make sure you don’t get stuck in an execution trading job. Unbeknown to the uninitiated aspiring trader, there are two types of trading role: execution trading jobs and full-blown analyst-style fund manager trading jobs. While execution traders are effectively ops staff who place trades at the behest of other people, analyst traders have the power... Read more

Anyone would think it’s easy to get into a hedge fund these days, particularly if you’re a trader. In the past week GLG partners hired two traders from Morgan Stanley and one from Goldman. CQS and Marshall Wace are also said to be scouting for disaffected banking talent (FT). Despite dire first half results (The Times), headhunters say the bottom hasn’t fallen out of hedge fund hiring. “There’s still work,”... Read more

Quantitative hedge funds might have taken some big hits over the last few months, but they’re keeping the faith with the computer-driven trading approach. However, hiring has become even more selective. A survey by the CFA institute, which took in responses from 31 firms with a combined $2,194 trillion in assets, reveals that in spite of the current tough conditions the quant approach is still popular, albeit with a new focus. Key... Read more

Apparently it’s all down to a) desperation, and b) overstaffing. With profits at Morgan Stanley down 17% YoY in Q1, no one's safe – even the sacred cows in prime brokerage and emerging markets. “Most prime services businesses have let go at least one or two people, in some cases double digits,” says Andrew Morland, global prime services consultant at search firm Pelham International. “It’s causing a lot of frustration,... Read more

It was a good week for hedge funds – unless you were GLG. Banks were still busily lopping staff, although there were rays of hiring in commodities and – strangely enough – leveraged finance. Hedge funds provided reasons to be cheerful. Hedge Fund Research predicted investors plan to pour $200bn into hedge funds this year. ICAP launched an African hedge fund. It emerged that the replica hedge funds... Read more

Unlikely. But you might earn tens. Trader Monthly’s latest annual instalment of trader pay porn shows that some London hedge funders (particularly those at GLG) did very well for themselves in 2007. This side of the Atlantic, the biggest of the big boys were: • Chris Hohn, The Children’s Investment Fund. Income estimated at $800m-$900m. • Noam Gottesman, GLG Partners. Income estimated at $700m-$800m. • Alan Howard, Brevan... Read more

Neglected at bonus time, investment banking risk managers are apparently very eager to work for hedge funds. Lee Bevan, a consultant at hedge fund specialist Mirage Recruitment, says there’s been a noticeable uptick in the number of investment banking risk professionals with a penchant for working on the buyside. “We’re seeing a lot more risk managers saying their bonus wasn’t very good and they want to move to a hedge fund,”... Read more

Financial firms are (ahem) ploughing money into agricultural commodities and the once-maligned trading roles are back in vogue. With all the hoo-ha surrounding escalating oil prices, it’s easy to overlook the agricultural commodities like grain, oil seeds, coffee, cocoa and sugar, but they’re predicted to take off in 2008. The latest quarterly review from the Bank for International Settlements reveals that trading on the agricultural futures and options market increased 16%,... Read more

2008 is tipped to be the year for distressed debt, and hedge funds are looking to bolster their teams in anticipation of a surge. The post-credit-crunch collapse has seen bond prices slump, sparking more interest in the counter-cyclical distressed debt sector as both hedge funds and private equity funds battle for a piece of the action. HSBC’s alternative investment group told Reuters that the ‘next strategy is distressed debt’ and everywhere... Read more

Peloton aside, hedge funds’ ‘high-water mark’ system for fees means bonuses across the industry could sink to new depths this year. Hedge funds’ fee structure is coming home to roost in a way that’s liable to impact pay, particularly at smaller houses. Most, if not all, funds charge two kinds of fee – management fees amounting to 1.5%-2% of assets under management and a more meaty performance fee, typically 20% of... Read more

As more and more fund managers look to exotic products like 130/30 funds, a massive gulf in skills is developing. In a 130/30, up to 30% of a portfolio can take a short view, with the proceeds of the short sales used to purchase 30% additional longs. Sounds confusing? Well, that’s the point. These funds, often tagged ‘hedge funds light’, beef up returns, making traditional managers keen to get a... Read more

Thanks to a surge in new business, fund of hedge funds are bridging the salary gap to compete for talent with single manager funds. Pension funds’ increasing appetite for alternatives has seen them pursue the fund of hedge funds route, in spite of the extra layer of fees, as they claim to offer diversification and due diligence. Investment consultant Watson Wyatt says it’s seen the number of pension funds searching for... Read more

Hedge funds may have had a bad January, but that hasn’t stopped pay rising – albeit at a slower rate than previously. According to a new survey of 800 US hedge fund professionals, average pay packets across the industry rose 6-10% in 2007. “The categories that saw the fastest rises were infrastructure professionals,” says Glocap managing partner, Adam Zoia, “Everything from fund accountants to investor relations professionals, and legal and compliance... Read more

All else may be going to rot, but is prime brokerage still a prime cut? Last week’s announcement by Credit Suisse suggests it just might be. Reuters reports that the Swiss bank plans to lop 150 people from its global securities division, whilst adding headcount in areas like … prime services. Recruiters confirm prime brokerage (PB) hiring is bearing up, although it can’t quite be described as racing ahead. “There... Read more