A few big firms — AQR Capital Management, Citadel, Millennium Management, Two Sigma Investments, Bridgewater Associates and Point72 Asset Management in particular — have been actively hiring in 2016, alongside midsize firms trying to reach the major leagues and several high-profile start-ups.
And as the calendar year draws to a close and bonuses large and small are direct-deposited to staff accounts and Christmas carols are heard on streets throughout much of the world, overall recruiting is tapering off as well.
Yet for several big hedge funds — by “big,” we mean at least $10 billion in assets under management and staff sizes measured in the hundreds — full-time hiring has been muted all year.
Among the quietest big-league hirers — most of whom performed poorly, while a few performed well — are New York–headquartered Paulson & Co., Eton Park Capital Management and York Capital Management; San Francisco–headquartered Farallon Capital Management; and East Setauket, NY–based Renaissance Technologies, recently featured in a November 21 Bloomberg article titled “Inside a Moneymaking Machine Like No Other,” with a reported greater than 20 percent Medallion Fund return as of June 2016.
London-headquartered Brevan Howard was a close runner-up.
For perspective, Citadel averaged more hires — or departures — in six active weeks than all five averaged all year.
This is against a 2016 backdrop where several poorly performing big funds with shrinking assets, including Tudor Investment Corp., and even some under federal investigation have been handing out more new-hire IDs in 2016 than these top five quiet hirers.
Brevan Howard hired a handful of investment professionals and a few client service, marketing and risk/operations personnel. Meanwhile, Paulson, Eton Park, Farallon, York Capital and Renaissance hired a few mostly junior and midlevel staff in investment, marketing, investor relations, legal/compliance and software developer roles. Among them, only Brevan and Eton Park made a few senior hires. York Capital’s hires skewed more front office than its top five peers.
For the purpose of this analysis, we excluded non-hedge fund roles, internally promoted staff members (not new hires) and administrative hires.
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