Hedge funds are having a rough time.
Several storied managers are posting dismal performance, while others are closing shop entirely.
At the same time, the industry is known for being lucrative, turning a fortunate few into multi-millionaires – and even billionaires.
Not that it's easy to find a job.
We asked a handful of hedge fund recruiters what it takes to find an investment role these days. Some common themes came up:
- There's a strong demand for analysts with quant backgrounds, which should come as little surprise – funds are incorporating alternative data into their strategies and trying to figure out how to outsmart the competition.
- Analysts need to be flexible, meaning they need to learn new skills or be willing to start at a small, start-up fund with less pay, since a lot of the bigger funds aren't hiring.
You can read the recruiters' advice in full below.
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Graham Smith, partner at Options Group
"The biggest trend right now is for hedge funds to be looking for talented quants of all levels to support their business. Gone are the times when it’s only the high frequency and systematic firms looking at hiring talented quants. We are seeing hedge funds of all strategies realize the value of big data and statistical analysis.
What's your advice for job seekers?
"Have a STEM (science, technology, engineering, math) degree from a top university, read up on topics/subjects beyond your core field of study, and be flexible as you may need to re-skill when you join a fund."
Richard Risch, CEO of the Risch Group
"The biggest trend today is how the industry is being reshaped as a result of poor performance industry wide. The big guys are seeing redemptions at a record rate, so hiring in that sector is non-existent or extremely limited. Today I would (and do) tell candidates looking in the hedge fund space to focus on the emerging manager segment. It is also the only segment of the industry we are seeing search work from today.
"Base pay is always lower at emerging managers, but could very well include equity. In one case a few years ago, an emerging manager took off, was sold and a couple of people received an eight-figure payout. As far as strategy, it seems the only ones consistently receiving net new institutional flows are systematic equity market neutral funds."
Adam Kahn, managing partner at Odyssey Search Partners
"Right now, the biggest trend in the hiring market is that the larger, more stable firms are really using this environment to pick off top-tier talent. Many of the larger multi-manager firms have been on a yearlong hiring spree. We don’t see them slowing down anytime soon.
"As for strategies, there seems to be much more demand in fixed income versus equity strategies."
What's your advice for job seekers?
"Level your expectations. Candidates should not expect guarantees or repayment of deferred comp. This is a buyers’ market and if you decide you want to take a look at other opportunities, you need to understand that."
See the rest of the story at Business Insider