In the media
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“The FTC’s announcement will not only increase the flow of talent and growth of newer funds, it could also force firms to be more competitive with retention strategies instead of the threat of sitting out for 18 months,” said Max Heppleston.
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“This could be massive for newer funds as top portfolio managers, analysts, and teams will be able to move more smoothly, and startup hedge funds can get going quicker, which can be so important to their success,” he added."
“I have seen roles recently paying up to 50% more for someone with a PhD in a quantitative field, with no work experience, when compared to a quantitative role with more than two years of experience,” said Max Heppleston, founder of recruitment firm H-Squared.
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Quantitative trading uses algorithms to understand market patterns and identify trading opportunities. Interest in computer-driven investment strategies first took off in late 1980s with launches including Jim Simons’s Renaissance Technologies and David Shaw’s DE Shaw.
"...to target the wealth channels...can be a labour and capital intensive market to crack. One of the ways firms have been tackling this is by hiring people who can sit across multiple functions."
"I can count on one hand the number of managers I have spoken with who aren't exploring or developing their private wealth channels to target HNWIs"
Asset managers have upped salaries and bonuses, with better long-term incentives, in the battle for prized staff.
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“If you are to compete with Blackstone, KKR or someone who can just offer a lot more money, it does mean your staff are at a higher risk of being poached. These funds have much deeper pockets,” said Max Heppleston
​Why make the jump from a traditional asset manager to an alternative asset manager? A higher salary is apparently a major draw for those looking to make the switch to private markets firms. Citywire found that those firms can often offer 50-100% more pay to their distribution and sales specialists than traditional asset managers do. Max Heppleston, said the money private markets specialists can offer is significantly higher, even for the mid-level bankers with $400K salaries he spoke to in Switzerland and the U.K. “For these roles, just because of what they are selling and who they are working with, total compensation was going into seven figures, so it was quite an easy sell,” he said. But it’s not just the money that’s appealing.
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Smaller, single-manager hedge funds have been pushed to search for people outside the usual sources, according to Max Heppleston.
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“They are now exploring people from traditional asset management or investment banking, which does crossover [business with hedge funds],” Heppleston said.
Max Heppleston, said the money private markets specialists can offer is significantly higher even for the mid-level bankers with $400,000 salaries he spoke to in Switzerland and the UK.
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‘For these roles, just because of what they are selling and who they are working with, total compensation was going into seven figures, so it was quite an easy sell,’ Heppleston said.
"Mr Heppleston says he sees a "misalignment of expectations" between many candidates and asset managers."
‘Nobody wants regulators coming after them for something that is not making them money,’ said Max Heppleston.
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There is also the issue of how much the ESG backlash in the US is on asset managers’ minds. Florida was the latest state to pass anti-ESG legislation in May.
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With the economy slowing, most ESG funds are likely to see weaker performance, which could make political pushback stronger.
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Heppleston, who specialises in searches for US companies, noticed that some senior ESG roles have been cut recently. He agrees that the debate around sustainability in the country is very politicised these days.
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‘One day you have people at BlackRock protesting against ESG and the next day people are protesting against fossil fuels,’ he said.
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Some analysts could also end up on the buy side doing research for an asset manager, said Max Heppleston.
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Heppleston said that few will end up at hedge funds or in other parts of the industry, where there are a limited number of open positions (many of which are higher-paying) and companies can recruit more specialized candidates. He added that overall, hiring at investment firms is picking up but is still competitive.​
​​Star female portfolio managers have been able to raise billions for hedge fund debuts
private credit, the recent trends in the multi-manager space and development of internal talent programs, the push into the Middle East, Asia, Latam, how private wealth distribution is taking center stage, and my thoughts on what will happen this year.
"Mr Heppleston says salaries are "much higher" within the field of asset management, so anyone who wants to transition away might have to "take a step back" or face a "substantial pay cut"."