WEST PALM BEACH, FL (HEDGECO.NET) – A new study conducted by Greenwich Associates has shown that more than half of hedge fund firms may hire new analysts and fixed-income professionals. Such hiringis being necessitated by the bond trading activities which have seen an increase of 20% to new levels of $7.5 trillion during 2004.
Greenwich Associates surveyed 1,462 institutional investors and hedge fund managers across the US. There is already increasing demand for individuals with knowledge and experience in the hedge fund management business. A Houston based investment manager, Christopher Alan Zook, chairman and chief investment officer of CAZ Investments told Dallas Morning News correspondent that the hedge fund sector is experiencing fast growth within the financial services sector. Zook said, “As more and more institutions become comfortable with hedge funds, firms are going to have to grow to meet those demands.”
According to the new survey, over 30% of fixed-income managers plan to hire additional staff, while up to 52% of hedge fund managers plan to increase the number of their employees in the near future. The study also disclosed that 58% of those hedge fund managers will be hiring additional research analysts to beef up their trading activities.
Hedge fund jobs offer lucrative pay packages, according to Zook, an administrative staff can make from $40,000 to $75,000 a year, while analysts can start out earning from $85,000 to $125,000 a year. Senior analysts can earn about $250,000 a year.
Another issue which may likely help to boost hedge fund hiring in the coming years, is the new hedge fund laws recently passed by the US Securities and Exchange Commission under Chairman William Donaldson. This new laws mandates US based hedge fund managers to register with the SEC. This legitimization of hedge fund strategies will likely facilitate the entry of larger Wall Street money managers into the hedge fund management arena. Some big Wall Street money managers such as Charles Schwab, Morgan Stanley and a host of others have already laid the foundations for their entry into large scale hedge fund management operations.
These new managers will likely increase the number of their hedge fund staff, thereby creating additional need for hedge fund management professionals in the market. According to Greenwich Associates, Institutional investors are seeking additional hedge fund talent. Frank Feenstra, a consultant with Greenwich Associates said institutional managers are �Seeking help in the form of more specialist knowledge from their dealers.� He added, �And they are building incremental expertise in-house through new hires, particularly in research.”
Many local hedge fund managers are also seeking additional hedge fund staff in capacities such as research analysts, administrative staff, customer support, marketing and sales professionals as well as traders. The global hedge fund industry is slated to continue to grow in the coming years, and this growth will also require skilled hedge fund staff to support the new business resulting from such growth.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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