Talent shortages could scupper hedge funds' expansionary aspirations

News reports suggest global macro hedge funds could find their growth stymied by a shortage of available talent.

Reuters reports that 63% of European investors are planning to increase their exposure to global macro hedge funds, which have the potential to offer good returns in current volatile markets.

However, the news service says good global macro talent is among the hardest to come by. Gavin Rankin, head of investment analysis in Europe at Citigroup Private Bank is quoted as saying global macro requires particularly good traders: "Identifying the trend, timing of trades and risk management are crucial."

Nicolas Campiche, head of manager selection services at Pictet et Cie, says global macro is probably one of the most difficult strategies to execute: "It's very difficult to identify good new global macro managers."

But David Durham, managing director of hedge fund-focused search firm Durham Consulting, told eFinancialCareers that global macro specialists are in no greater demand than other staff focused on other strategies. "We have a stack of hedge funds that are looking to expand across all strategies, whether in emerging market bonds, convertible arbitrage, equity volatility trading, or energy. You name it, everywhere is busy right now."