Experienced hedge fund professionals are finding jobs in diverse places such as university endowments, sovereign wealth funds and even the U.S. Securities and Exchange Commission. That’s according to a new survey just released by the executive recruitment firm Heidrick & Struggles International Inc. and published by Reuters.
Heidrick & Struggles surveyed more than 400 portfolio managers at over 100 hedge fund firms for its report. The report noted that nearly 900 hedge funds went out of business last year, releasing a torrent of experienced professionals who are now more likely to seek out stable firms with more than $1 billion in assets for their next hedge fund job.
The exodus should slow down in 2010, with a “significant increase in hiring at most large banks and proprietary trading firms,” says Claude Schwab, head of the U.S. hedge fund practice at Heidrick & Struggles. Professionals may see compensation guarantees return as well, although many employers will likely include deferrals and clawback clauses in their compensation agreements.
It’s important to note that many of the hedge fund pros making the move to endowments and government work are quite senior, and may have already amassed their fortunes while working at hedge funds. Younger associates who haven’t yet accumulated their millions aren’t so eager to jump the hedge fund ship.