One hedge fund recruiter says funds are reining in their recruiting plans in anticipation of a round of consolidation in the autumn.
"Hiring has quietened down as hedge funds focus on long term strategy rather than adding headcount," says Chris Sevenoaks, a consultant at recruitment firm Finance Professionals.
He adds: "Several single strategy hedge funds are not hiring in anticipation of being purchased in the autumn, while multi-strategy funds aren't hiring in anticipation of doing the purchasing."
With consolidation on the cards, Sevenoaks says funds' focused is instead on ensuring the correct operational structures are in place, a trend that has led to a slight increase in demand for chief operating officers (COOs).
Consolidation in the fragmented hedge funds and fund of funds markets has already kicked off. In June, for example, Absolute Capital Management, a London-listed hedge fund manager, bought Swiss third-party marketing firm TCA.