A sign that hedge funds are no longer the place to be

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While investment banks have mostly had a good first quarter, the same cannot necessarily be said of hedge funds. GLG's first quarter results, released yesterday, paint a picture of slowly falling headcount and - unlike investment banks - rapidly declining pay.

GLG said its compensation and benefits and partner profit share fell 62% year on year thanks to 'lower employee compensation and benefits, as well as lower discretionary bonus accruals and limited partner profit share."

Headcount was down only 9% over the same period, suggesting a big reduction in pay per head.

This is in sharp contrast to investment banks, most of which saw pay per head rise dramatically over the past three months.

If this continues, hedge funds look set to lose staff to the banks they originally poached them from.