Reading about the movements of industry greats is fun, inspiring, and a source of challenge. It should also be thought-provoking. Reuters reports on two new hires (both pulled from JP Morgan Chase) into Citadel, a $20 billion hedge fund run by Ken Griffin (who ranks fifth on the list of top-paid hedge fund managers in 2007).
Derek Kaufman ran Global Fixed Income in JPMC’s Proprietary Positioning Group, and will run Citadel’s U.S. fixed income business. Patrik Edsparr was head of fixed income at his old firm, and will be in charge of Citadel’s European division beginning in the summer. And hiring at Citadel has actually been busier than that, according to HedgeWeek.
As various recruiters interviewed in this space have pointed out, hedge fund comp structures are a strong attraction for star bankers. Reuters further notes: “The pull may be even stronger now that many hedge funds are considered to be financially sounder than many large banks that face problems from the credit crisis.”
Is it a good time to make a pivotal move? Perhaps to a strong overseas market? Time to dig in or position for the future – and if so, how? Later this week we’ll post hedge fund highlights from the 2008 Financial Services Career Forecast by Kathy Graham of Highest Quality Search, the very recruiting firm that placed Ken Griffin years ago.
Most estimates put the hedge funds universe at somewhere around 10,000 strong. Some new players made headlines this week, including funds of funds.
Investcorp’s Credit Opportunities Fund – Bahrain-based fund of hedge funds will invest in mortgage and credit sectors
EverKey Global Fund – long/short emerging markets fund to be launched by Jeffrey Everett
Galleon Group’s existing Asian long/short equity fund – may be moving operations to Singapore
BNY Mellon Enhanced Coefficient Select Fund – a global macro absolute return fund
Bank Street Global Advisors – global macro and statistical arbitrage fund will be launched next month by 20-year-old Kirill Evseev
The Arizona Public Safety Personnel Retirement System - is outsourcing management of its $7 billion assets to several existing managers
International Equine Acquisitions Holdings – is reinventing itself as a racehorse-focused hedge fund
Electranet Fund I – is a new a long/short public equity fund by Electranet Capital, focused on energy
Khamsa Fund – will focus and the Middle East and is expected to launch with $25 – 50m
UBP’s DCO Distressed Fund – fund of funds seeks to raise $300 million to invest in 20 to 25 managers
HFZ Capital Management’s Red Kite Fund – focuses on Asian futures and equity
Hiring a new analyst, looking for a new position, considering an offer, negotiate comp at one’s current firm — reliable hedge fund salary data is an absolute necessity for each situation.
It’s readily available in the Hedge Fund Compensation Report by Hedge Fund Search Digest. Here’s a recap of what went into producing the 2007 Report:
- Hundreds of survey responses narrowed down to 232 respondents representing 220 firms
- Household names include ABN AMRO, American Express, Credit Suisse, Deutsche Bank, Goldman Sachs, and Morgan Stanley
- 75% USA-based respondents
- 31% with 10+ years of hedge fund industry experience, 63% with 5+ years, and only 16% with less than 2 years
- Titles included Analyst, Trader, Portfolio Manager, and more specific titles such as Quantitative Strategist, Assistant Operations Manager, Head of Operational Due Diligence, and Quantitative Risk Manager
The 2008 Survey and Report isn’t far off. We’ll be posting more information here soon.
