Mon, Nov 30, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Headhunter Carrington Fox: trend of hedge funds acquiring talent from financial institutions may reverse in 2011

Friday, December 10, 2010
Opalesque Industry Update - Headhunting firm Carrington Fox predicts decline of candidate placements in Hedge Fund space as regulations tighten and banks offer securer salary propositions.

The historical trend of Hedge Funds acquiring talent from Financial Institutions could be reversed going into 2011, as new regulations for Alternatives come into play. Banks are now seen by many as “a more stable option,” according to a leading financial services firm in both sectors, Carrington Fox. “Compensation issues will be replaced by bigger salaries for candidates hoping to work in banks,” says Nicholas Wells, one of the firm’s Directors.

Mr Wells, 31, a long standing consultant of the boutique head hunting agency specialising buy and sell side trading and sales search, which was established in 2002, says Investment Banks and Hedge Funds: “have been battling for the same talent as of late, which in 2008 and 2009 would simply not have happened. In the past, Hedge Funds have acquired talent from Financial Institutions as the direct percentage payout and lifestyles within that world were more attractive – which is less so now.

“If in 2011, banks leverage the more attractive salary propositions off against Hedge Funds, it will snuff out many new start ups and reduce the attraction of this market for new ventures – and we will almost certainly see a decline in the hiring of candidates in this space.

“Hedge Funds often do not have the capital to pay comparable salaries to banks due to the cost and impact on their cost base. These issues may force them to move overseas to remain competitive because they can position traders in any geography to make use of the local execution traders and remunerate offshore. However, if anyone has a chance of outflanking the new laws, it is the Alternative Investment space.”

Mr Wells went on to comment that Hedge Funds may manoeuvre staff to explore opportunities where tax and risk restrictions make business more attractive. “If London was stripped of its crown as a financial hub because of tighter regulation, there could be an exodus to other global financial centres, but for the most-part – talent would move Stateside and perhaps more so to the Far East - where there is plenty of appetite to harness the youthful entrepreneurs of the West who can capitalise on the markets they are leaving behind,” he added.

Mr Wells believes most candidates Carrington Fox will place overseas will be at the younger end of the spectrum because senior bankers are tied to children, property portfolios and wives who do not want to overturn their lives to move to a different country. “The younger generation (i.e. 25 to 35) have fewer commitments to remain in the UK,” he said.

(press release)


What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November