With institutionalization, regulation and enforcement as basic a part of hedge fund life as breathing is for humans, many firms have hired between one and five lawyer and other compliance staff this year, either for new roles or to replace departing staffers.
But so far in 2016, only a few hired more than a half dozen. And only one has hired at least a dozen lawyer and other compliance employees, according to a recent HFObserver survey of functional role hiring trends.
Meanwhile, the biggest hirers have sated their thirst for such talent by going after a different mix of talent pools.
Stamford, CT–based Point72 Asset Management led all firms with at least a dozen lawyer and other compliance hires. New York–headquartered Och Ziff Capital Management was neck and neck with New York–headquartered Two Sigma Investments, followed by Greenwich, CT–based AQR Capital Management. All lawyer and other compliance hires tracked from these firms were for roles filled in the U.S. and UK.
Stamford, CT–based Point72 mostly pulled from the private sector, especially from other large hedge funds and investment firms and from law firms. Two Sigma — the only firm of this group currently hunting for additional lawyers, according to publicly available information — focused on well-known New York–headquartered law firms, including Skadden, Arps, Slate, Meagher & Flom; Cravath, Swaine & Moore; Mintz Levin; and Paul, Weiss, Rifkind, Wharton & Garrison.
Och Ziff mostly sourced from law firms but also appointed a former U.S. attorney general to its board of directors, while AQR’s hires — which also included a former government hire, from the SEC’s asset management division — skewed toward investment banks.
The HFObserver survey was based on 170 lawyer and other compliance hedge fund hires from January through August 2016. Note that some lawyers maintain compliance responsibilities and compliance personnel are not necessarily lawyers. The survey excluded lawyer and compliance hires for non–hedge fund business units and excluded chief operating role hires, though some COO roles, especially at smaller firms, may include lawyer/compliance responsibilities. Chief risk officers were also excluded, though some CRO roles include lawyer/compliance responsibilities.
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).