The talent needs of the hedge fund industry are changing fast and the most profound impact will be felt by operations staff due to increased regulation. No longer seen as “the guy in the corner”, operations professionals are being given increased responsibility as the industry reshapes itself.
Key hedge fund decision makers came together last month to discuss the shape of the post-crisis hedge fund world. In the roundtable hosted by Badenoch & Clark, one message came through loud and clear – the talent needs of the industry are changing fast.
Post-Madoff, hedge funds are under pressure to implement increased regulation and due diligence. Investors now factor operations capability into their investment decisions and want to know more about hedge funds’ operational control than ever before.
Operations professionals are being given increased responsibility as the industry reshapes itself.
As a result hedge funds need to have the right skill sets in place, and a level and quality of staff that investors will have faith in to deliver. With a higher profile role within the industry, operations professionals will see enhanced career prospects and, potentially, increased salaries and benefits to match.
A premium is being put on individuals who excel in what is likely to be a lower risk, more regulated environment. This shift in emphasis could put professionals with a history in investment banking at an advantage over people that have spent large parts of their career in boutique funds. As the financial sector reshapes itself, curbs on remuneration and trading activities in the banking sphere might also lead staff to migrate to hedge funds.
Talent strategies are already changing in order to ensure the industry has the right people to help it grow again. Those companies that get the right professionals in the right place now will be the ones most able to grow quickly again once confidence returns.
Discover where hedge fund leaders believe the future of the sector lies, and how this new picture might affect skills needs: download the key insights from our recent roundtable event.
