Q1 2017 Hiring Trends: Citadel, Energy/Commodities and Healthcare Sectors, Diverging Analyst Talent Strategies

HFObserver tracked 1,150 hedge fund job moves in Q1 2017.

For the second year in a row, Chicago-headquartered Citadel led all firms in Q1 hiring, with over 50 hedge fund staffers onboarded in Q1 2017. Citadel hiring also included full-time roles for its Aptigon Capital and Surveyor Capital units and did not include hiring for Citadel Securities, the firm's separate market-making business.

Meanwhile, New York–headquartered Millennium Management and Stamford, CT–based Point72 Asset Management replaced last year’s second and third seeds — Westport, CT–based Bridgewater Associates and Chicago-headquartered Balyasny Asset Management — with between 30 and 50 new full-time hedge fund hires each.

The majority of Citadel and Point72 hires were front-office investment roles (analyst, portfolio manager, trader), with Citadel more skewed than Point72 toward senior investment hires. Millennium’s front-office hires — which accounted for slightly over one-third of overall hiring — were also more skewed than Point72 toward more senior hires.

But if Q1 front-office hiring is any indication of how these firms think about the texture of investing edge, especially at the analyst levels where most of the hiring took place, Millennium is clearly the most old-school of the group, having acquired the traditional investment and research analysts with finance and sector-specific experience.

Point72 and even more so Citadel were much more skewed toward a fuller array of analyst roles, from the traditional finance-centric investment and research analysts to the quantitative/quantamental, market data, and artificial intelligence/machine learning analysts and software developers. Citadel also recently announced a series of undergraduate and graduate school datathons in the U.S., U.K. and Ireland.

The energy/commodities sector led all sector-specific hiring, followed by the health care sector, which has not been a category hiring leader in years.

Among operating hedge funds, Bridgewater experienced the greatest talent outflow, followed by Citadel. Both firms also logged the greatest number of departures in 2016.

Among the banks, New York–headquartered Goldman Sachs switched positions with second-place Morgan Stanley this year for the most talent handed over to the hedge fund sector in Q1.

The HFObserver Industry Moves Database is compiled daily from publicly available sources and information sent to HFObserver (click here to access full listing of monthly job moves — subscription required). This survey only includes full-time non-administrative hedge fund roles and does not distinguish between voluntary and involuntary departures.