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Thom Young From Kirsten Bischoff, Opalesque New York:

Along with a better environment for new fund launches, and the asset expansion seen by mid-sized hedge funds comes increased employment opportunities, and the industry has seen this play out over early 2011 in a flurry of people moves. While this is good news for hedge funders, it is not necessarily good news for firms, as investors are not reassured when they see staff jumping ship, (whether that be because staff simply are moving onto another opportunity or the firm is "losing its luster").

Most recently we have seen Henderson Group struggle to keep assets at Gartmore (the fund it acquired), finally taking steps to assure investors that 12 of the team’s managers agreed to stay with the firm. Also in early March Highbridge Capital saw two key portfolio managers depart, and one of those losses resulted in the liquidation of a $1.4bn fund. And, in a recent article in efinancialnews.com, recruiters indicated that larger firms had increased hiring in part from staffing needs due to asset growth and in part to make up for employees setting up their own shops or leaving for launches (which typically are more generous in offering equity stakes).

"Over the past 2-......................

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