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BarCap and Macquarie keep equity research hiring alive

Barclays Capital and Macquarie are hiring equity researchers, which is probably more than can be said for anywhere else at the moment.

According to Macquarie’s own website, the Australian bank appears to be pushing ahead with plans to grow its European cash equities franchise, and is interested in hearing from equity researchers of any ilk, but particularly those of a metals and mining or oil and gas background.

Barclays Capital is also recruiting equity researchers for a new European cash equities division, and is reputedly doing so ‘hand over fist’. “They’ve taken four or five teams, including Lehman’s top-ranked oils team,” says one research-focused headhunter. “They’ve been paying some generous guarantees.”

BarCap and Macquarie join boutiques like KBC Peel Hunt and Liberum Capital, which have been stocking up on equity research expertise in the past few months.

Predictably, the appetite for researchers is waning as the end of the year approaches, but headhunters appear optimistic that it will resume in the New Year. “It’s not going to be as prolific as it has been, but there are still people who will be interested in recruiting,” says Jonathan Evans, chairman of search firm Sammons Associates.

And now for the bad news…

Unfortunately, hiring at BarCap and Macquarie is unlikely to mop up all the equity researchers let go from rivals as equities revenues plummet in line with an anticipated 50% reduction in fees earned from hedge funds.

Goldman and Citigroup have already cut researchers, and the few redundancies announced at Cazenove are expected to affect researchers disproportionately. “People are right-sizing their business with the view that client revenues will be significantly reduced,” says Simon Vaughan Edwards at search firm Correlate.

The most employable equity researchers of 2009 will probably be those who specialise in oil and gas stocks. The least employable may well be in the consolidating financial services sector.

As ever, luckless equity researchers who can’t penetrate BarCap or Macquarie can always try the buyside. Last week, it emerged that Old Mutual had hired two UK equity analysts, one of whom had previously worked at Citigroup.

Comments (4)

Comments
  1. Barcap would indeed have appeared to employ the old Lehmans Oil Team, have heard the same.General view however would be that they have appeared to pay up for little. Fair dues to the Lehmans boys..they always did talk a good game. Guarantees !!! they so did not need to have done that.

    GreenEyedEquityAnalyst Reply
     
  2. Why are oil and gas analysts likely to be in demand next year? The market cap of the sector has plummetted with the oil price – which will surely hit secondary commissions. And on the primary side, there is extremely limited investor appetite for new equity from smaller E&P companies, while the large caps are already well capitalised.

    There’s probably a wave of M&A activity coming, but I don’t see how this will materially beneift sell side researchers.

  3. The only firms who will survive this plain vanilla equity market will be those such as Execution

  4. BarCap needs to offer guarantees because of the fear the they will become Nationalised and therefore any future bonus will be unlikely.

    In regards to Macquarie, having worked with them for over 3 years it is true that they are still looking to add additional head-count although I still believe that any comany hiring now is better off still hiring the best people for the job rather than those who have been made redundant or lost their job. To be the best in market you have to put your hand in your pocket now and recoup the rewards in the years to come rather than playing it safe now.

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