The operating environment for smaller hedge funds in 2013 is tougher than ever before. However, large firms are thriving and receiving fresh infusions of capital, which is spurring job growth. In the first half of 2013, HedgeFund Intelligence reports that hedge fund assets grew to approximately $2.35 trillion. For job seekers, this means large firms present lucrative employment opportunities.
Global Players Rule the Market
The global recession of 2008 changed the dynamics of the hedge fund industry. Immediately following the collapse, credit was tight and investment capital evaporated. Though market conditions have subsequently improved, investors are more cautious and selective when placing their funds. Global players with strong performance records provide stability for easily jittered investors making established firms dominant in the industry. HedgeFund Intelligence groups these major players into a category called the Global Billion Dollar Club, which forms the bulk of the assets under management.
Impact on Job Seekers
Though competition for employment at large firms is stiff, greater opportunities for advancement make networking and interviews worthwhile. Positions in hedge fund administration or technology provide valuable experience leading to high-level jobs. Many larger firms are outsourcing these functions, which gives job candidates another method to enter the hedge fund industry. Goldman Sachs, Morgan Stanley and CITCO, among others, are all assisting large, successful firms with operations management. In order to learn the business, it may be more practical to work for a company specializing in outsourced services.
Global Job Opportunities
Though many dominant hedge funds are located in New York, there are also large firms in Europe that have impressive portfolios. Job seekers looking to optimize their resumes need to remain cognizant of the breadth of opportunities available. Legislation regarding hedge funds varies by country, which changes the job qualification requirements. Language skills, business acumen, and analytic ability need to align with the demands of the marketplace. Large players have high standards requiring job candidates to work harder for a coveted position.
For those looking to advance their careers in the hedge fund industry, major firms are thriving and taking on more investments. Working at a larger firm allows one to enhance their understanding of market dynamics, which leads to better jobs and entrepreneurial opportunities.