Forbes’ ranking of the 40 highest paid hedge fund managers globally is out.
Six are situated in Europe:
1. Alan Howard of Brevan Howard ($400m in 2011)
2. David Harding of Winton Capital management ($150m in 2011)
3. Michael Platt of BlueCrest Capital management ($125m in 2011)
4. Yan Huo of Capula Investment management ($100m in 2011)
5. Colm O’Shea of Comac Capital ($100m in 2011)
6. Anthony Todd of Aspect Capital ($70m in 2011)
As Brevan Howard illustrated in 2010,the earnings of the founders or star hedge fund managers are not necessarily indi
cative of high pay all round: Alan Howard earned £440m, but the average for everyone else was £235k.
Nevertheless, on the assumption that high pay for stars is at least slightly correlated with pay for staffers, Brevan Howard, Winton, BlueCrest, Capula, Comac and Aspect, look like the hedge funds to work for in Europe.
With this in mind, we’ve investigated their recent recruits. Based on changes to the FSA register (which can be inaccurate and may include internal moves), this is how much hiring each fund did in London during 2011, and the profile of its new recruits.
Hiring at Brevan Howard in London
Number of FSA registered persons in total: 89
Number of FSA registered persons added in 2011/2012: 25
Preferred profiles: Unidentified individuals from overseas and Imperial students
Brevan Howard has made a big noise about its intention of hiring prop traders from investment banks. In fact, it’s hired comparatively few. Of the 25 people who joined Brevan in 2011/2012, only 7 appeared to come directly from investment banks (2 from Morgan Stanley in London, 1 from Morgan Stanley in Asia, three from Goldman Sachs, 2 from Credit Suisse.) Rumour has it that it’s also added Julien Eisenberger, formerly of Credit Suisse, recently – although this hasn’t been confirmed.
Equally, Brevan doesn’t seem particularly prone to recruiting from rival Londonhedge funds. Only 1 of its 2011 hires was registered at a London fund previously.
Instead, most of Brevan’s hires seem to have no history of working in a registered context in London and many seem to have come from overseas. 10 of its recent hires fall into this category.
The fund also seems keen on hiring students from Imperial, having taken on at least two last year, including a PhD mathematician.
Hiring at Winton Capital in London
Number of FSA registered persons in total: 40
Number of FSA registered persons added in 2011/2012: 4
Preferred profiles: Varied
Winton has been doing far less hiring than Brevan Howard: changes to the FSA register indicate it added only four people last year. These were: an Imperial PhD, two people from rival funds, and someone from Goldman Sachs.
Hiring at Bluecrest in London
Number of FSA registered persons in total: 68
Number of FSA registered persons added in 2011/2012: 19
Preferred profiles: Ex-bankers and unidentified individuals from overseas
Bluecrest is open to hiring from banks: 7 of its new recruits last year were former bankers (1 from BNP, 1 from JPMorgan, 1 from Citi, 1 from Deutsche, 1 from Merrill Lynch International, 1 from Morgan Stanley, 1 from CIBC). It’s also open to hiring from rival hedge funds: three came from this route. However, the remainder of its 9 hires hadn’t been registered in London previously and weren’t traceable elsewhere, suggesting they were student hires – many from overseas.
Hiring at Capula in London
Number of FSA registered persons in total: 45
Number of FSA registered persons added in 2011/2012: 15
Preferred profiles: Ex-bankers and Chinese.
If you’re a trader and you want to get out of a bank and into a hedge fund, Capula is a good bet. 9 of its 15 recent recruits came directly from the banking sector (2 from BarCap, 1 from SocGen, 3 from Merrill Lynch International, 1 from BNP Paribas, 1 from UBS, 1 from Goldman). It also hired a software engineer from a Brazilian hedge fund and 5 people with no discernable history of working in the UK previously.
With Yan Huo as its founder, Capula also seems keen on hiring from China. Three of its new recruits into FSA registered roles last year were Chinese. 1 had worked at Goldman. 2 hadn’t worked in the UK before.
Hiring at Comac in London
Number of FSA registered persons in total: 22
Number of FSA registered persons added in 2011/2012: 10
Preferred profiles: Ex-bankers and employees of rival hedge funds
Comac hired three former bankers last year (2 from Goldman, one from Nomura). It also hired five people from rival funds and two people who hadn’t been registered in London previously.
Hiring at Aspect Capital in London
Number of FSA registered persons in total: 36
Number of FSA registered persons added in 2011/2012: 7
Preferred profiles: Employees of rival hedge funds, dreadlocks acceptable
Of 7 new people Aspect registered with the FSA last year, three came from rival funds (2 came from Cantab Capital Partners). The remainder had no history. Notably, Daniel Oram, who is research director at Aspect and only registered with the FSA last year (despite working there for some time), appears to have dreadlocks.