Generally speaking, finding work at a hedge fund is as much about who you know as what you know. The hiring process is rather opaque, with most firms rarely ever advertising openings. Traders tap their network, find former colleagues or reach out to up-and-comers who recently made a name for themselves. The process has been a constant source of frustration for those without a sprawling network. Fortunately, a sea change may be underway.
Financial News is reporting that hedge funds are finding it much more difficult to poach talent, due mostly to the closing of proprietary trading desks at large bulge bracket banks. In previous years, hedge funds would use larger banks as a farm team of sorts, stealing away talent whenever they had a seat to fill. With their prop trading bench emptied, hedge funds have had to resort to the unthinkable: internal recruiters.
At least three high-profile hedge funds – Arrowgrass Capital Partners, Millennium Management and Polygon Global Partners – have started building business development teams to aid in their headhunting efforts. It’s a clear win for hedge funders with small networks as internal recruiters tend to gravitate toward good resumes, not recognizable last names. They’re also more open to taking your phone calls.
Natural Alternatives to Dealing with Exhaustion (eFinancialCareers)
To cope with stress and long hours, bankers often use shortcuts to boost energy and get through the day: coffee, Red Bull, energy shots and even amphetamines, each of which has well-documented side effects. Instead, bankers may want to rely on several natural herbs and vitamins that can help boost energy, decrease stress and increase focus.
AIG Chief Executive Robert Benmosche appears tired of the number of regulators that have been peering over his shoulder since the firm was bailed out. We are not going to be intimidated by competing regulatory authorities,” he said. “I believe we’ve satisfied their requests,” referring to the New York Department of Financial Services. “They are not sure we have.”
Buffett Being Buffett (Bloomberg)
What’s the greatest hedge fund in history? You probably have a different answer than Warren Buffett. He picked the Federal Reserve. His reasoning is fascinating.
Networking site LinkedIn is being sued by its customers for allegedly hacking into their external email accounts to download their contacts without their consent.
Naming Names (FIN Alternatives)
Two new alleged co-conspirators have emerged in the trial of former SAC Capital Advisors portfolio manager Michael Steinberg. Prosecutors allege he was aided by Lacey Higgins, a supply-demand analyst at Intel Corp., and Mark Lipacis of Jefferies & Co.
New York Life has suspended the chief executive of its lending unit, Trevor JClark, and another one of its senior executives executive for failing to disclose certain personal investments. The unit, Madison Capital, was just named lender of the year by Mergers & Acquisitions.
DB Joins the Poor FICC Club (Financial Times)
Deutsche Bank is expected to join rival banks in admitting that its third quarter fixed income revenue will be highly disappointing. Jefferies just reported lousy revenue numbers; Barclays is expected to do the same.
Simon Warshaw, one of the key players in the $130 billion Verizon/Vodafone deal, is leaving UBS after 27 years. He is said to be considering setting up a small independent advisory boutique.
Buzz Around the Office
William Shatner, the actor who immortalized the role of Captain Kirk on Star Trek, has admitted that he is terrified of flying. Apparently that show wasn’t real.
List of the Day: Cover Letter Tips
Writing cover letters can be difficult. Here are three ways to improve yours.
- Make it keyword-heavy.
- Mention something relevant in the news.
- Mention someone you know in common.