Hedge Fund Managers enjoyed positive returns in August, during a volatile month in the markets, as debate continued on the outlook for inflation and economic growth. Quantitative strategies posted strong results across the board, and from a recruitment standpoint there has been continued demand for Quant Researchers across the asset classes, particularly those with a systematic background. More Managers re-established short bond and interest rate positions in August as they brace for an increasingly aggressive response from central banks. There has also been increased demand for Rates PMs/Traders across the board from both top tier hedge funds and smaller boutique shops.

EXPECTED FUTURE TRENDS

Allocations to hedge funds are likely to increase in the second half of the year, with a recent survey from SigTech finding that 23% expect a dramatic increase in institutional investors allocations to hedge funds over the next 2 years’ of 100 hedge funds respondents.

Macro, CTAs and relative value hedge funds should attract more flows, consistent with expectations of a softer fundraising environment for private equity and venture capital (PEVC) in the second half of the year.

From a hiring standpoint, Rates and Inflation Traders will be in high demand, given the macro-economic environment and rising risk of recession.

CANDIDATE EXPECTATIONS

There are a number of key factors that candidates are considering in their next opportunity. Prospective candidates are increasingly seeking a workplace that offers collaborative culture and mentorship. Culture should be a major aspect of consideration when promoting your company, and this sentiment should be reinforced at all stages of the hiring process to avoid any risk of lip service. If not already implemented, mentorship programmes for employees across the levels should be introduced, not only to attract potential talent, but to also allow for the development of future key leads.

Strategists and Researchers are also increasingly looking for career trajectories that allow them to move into risk-taking positions.

Investment banks are significantly increasing base salaries, and in order to remain competitive, particularly in the current candidate-short market, employers can’t afford to fall short on their hiring budgets.

If you are interested in learning more about live opportunities, or you would like to discuss how we can support your hiring processes in the current market, please get in touch with Orla Louden, Senior Consultant in Hedge Funds.