Hedge funds don’t shout about their hiring and, despite a supposed exodus of traders from investment banks to the buy-side, they also don’t recruit a lot of people.
However, over the past month some of the larger UK hedge funds have been bolstering their ranks. What does it say about your chances of securing a job on the buy-side?
1. Brevan Howard is growing again
Last year was not a good one for Alan Howard’s hedge fund – it lost money in 2014 after a disappointing 2013 and a number of senior traders headed for the door – of their own accord, or not. In the past month, however, it’s made some relatively senior hires. Shawn Cooper, a former ABS/CDO trader at Deutsche Bank, moved to Brevan earlier this month as did Rajesh Amin, a former Goldman Sachs trader who left the bank to join start-up hedge fund Decura Investment Management in 2013.
What this means for you: Brevan Howard will always be a selective recruiter, but these hires suggest that it’s building its London operation again after years focusing on moving front office functions out to its Swiss office. There’s hope.
2. Moore Capital Management has hired a former senior J.P. Morgan trader
David Cross, the former head of sovereign credit default swap trading at J.P. Morgan, left to join Claren Road Asset Management – the hedge fund majority owned by private equity giant Carlyle Group – in 2013. In February, he left along with three other colleagues and has now re-emerged at Moore Capital Management in London.
What this means for you: The expansion at Moore Capital in London continues – over the past 12 months headcount has increased by nearly 10% according to the Financial Conduct Authority (FCA) Register. As with a lot of hires last year, it’s targeting former banking traders.
3. CQS has kick-started a hedge fund dynasty
Earlier this month, CQS ensured the next generation of Jabre hedge fund managers by hiring Jean-Philippe Jabre, the son of well-known hedge fund CEO Philippe Jabre.
What this means to you: This suggests an element of nepotism in the hedge fund industry, but actually CQS has been adding to its ranks elsewhere too. Charles Egerton-Warburton – former chief operating officer for Credit Suisse UK and member of the peerage – joined as chief of staff in April. If nothing else, it helps to be connected.
4. Millennium Capital has hired a former analyst from Brazil
Last year, Millennium Capital was rapidly expanding and the default choice for traders in investment banks looking for a move to into hedge funds. The ‘sink-or-swim’ mentality at the firm has always meant a high turnover, however, and in recent months hiring there has slowed. Nonetheless, Millennium just hired Edvaldo Melo as a quantitative analyst – his last job was at BTG Pactual in Brazil.
What this means for you: On the one hand, it suggests that Millennium is expanding its search for talent – Melo is the second hire from BTG Pactual’s Brazilian operation in recent months following Antonio Fortes, who joined as a senior portfolio manager focusing on Latin American rates and FX. It also shows that it’s possible to move from an unconventional background – before joining BTG, Melo worked as a business analyst at EY.
5. York Capital has hired a former investment banker
Aly Patel joined York Capital earlier this month as an investment analyst, according to regulatory filings. He has a relatively unusual background a hedge fund recruit, having worked in corporate finance at Goldman Sachs and private equity at Apax Partners. The MBA from Harvard will have helped.
What this means for you: Switching into a hedge fund is not just for investment banks’ markets employees.