{"id":38749,"date":"2013-10-22T10:26:01","date_gmt":"2013-10-22T14:26:01","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=38749"},"modified":"2013-10-22T10:35:55","modified_gmt":"2013-10-22T14:35:55","slug":"citi-survey-hedge-funds-that-invest-in-people-management-make-more-money","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2013\/citi-survey-hedge-funds-that-invest-in-people-management-make-more-money.html","title":{"rendered":"Citi Survey: Hedge Funds That Invest in People Management Make More Money"},"content":{"rendered":"

\"survey\"<\/a>New York (HedgeCo.Net) – Hedge funds that invest in people management register higher average investment returns than their peers, according to a new survey from Citi Prime Finance.\u00a0Citi interviewed a group of 24 hedge funds, each with at least $500 million in assets under management.<\/p>\n

\u201cJust as hedge funds once claimed \u2018operational alpha\u2019 as a differentiator, we believe that \u2018people alpha\u2019 will separate some firms from the pack and will soon become an industry norm,\u201d said Sandy Kaul, Global Head of Business Advisory Services at Citi Prime Finance.<\/p>\n

The study evaluated each hedge fund firm\u2019s practices by focusing on four key pillars \u2013 Talent Acquisition, Talent Retention, Learning & Development and Performance Management. For each of these categories, Citi developed a list of standard and market leading criteria and ranked firms using a 10 point scale, cumulating in a single \u2018people score.\u2019<\/p>\n

According to the survey, the number of people working at the firm is the determining factor in their focus on people-related matters. Larger firms (+150 people) consistently outscored and outperformed medium and smaller sized firms. When there were similar sized firms such as those between 50 and 150 employees, those that fell in the bottom half of the study\u2019s people score underperformed similarly sized firms in the top half by nearly 600 basis points between 2009 and 2012.<\/p>\n

Other key findings:<\/p>\n

\u00b7 The greatest difference between top and bottom performing firms was in their approach to talent retention. This included developing an interactive culture and offering an extended benefits package, flexible workplace arrangements and workplace perks.<\/p>\n

\u00b7 Firms that scored well in talent retention also tended to have stronger approaches towards talent acquisition. These firms used techniques such as implementing internship programs and actively recruiting a diverse workforce.<\/p>\n

\u00b7 Firms that displayed strong growth also emphasized learning and development. This included leadership training, formal mentorship programs and ongoing coaching for the management and investment teams.<\/p>\n

\u00b7 Another indicator of current and future success is the presence of a robust review process that includes peer reviews, separate performance and compensation discussions and the inclusion of qualitative as well as quantitative factors.<\/p>\n

\u201cAs the industry continues to mature, sophisticated investors will assess hedge funds\u2019 adherence to people management as a standard part of industry due diligence,\u201d added Kaul.<\/p>\n

Alex Akesson
\nEditor for\u00a0<\/a>HedgeCo.net<\/a>
\nalex@hedgeco.net<\/a>
\nHedgeCo.Net<\/a>\u00a0is a premier\u00a0hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – Hedge funds that invest in people management register higher average investment returns than their peers, according to a new survey from Citi Prime Finance.\u00a0Citi interviewed a group of 24 hedge funds, each with at least $500 […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16044,919,3],"tags":[],"class_list":["post-38749","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-strategies-2","category-hedge-fund-research","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=38749"}],"version-history":[{"count":4,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38749\/revisions"}],"predecessor-version":[{"id":38759,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/38749\/revisions\/38759"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=38749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=38749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=38749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}