Hedge funds still top choice for fund management talent

Traditional asset managers and investment banks are still struggling to slow the exodus of their top professionals to hedge funds.

"Hedge funds are vacuuming skills from long-only houses," Amin Rajan, chief executive of search firm Create told Reuters.

Reuters reports that for much of this year, fund management firms have been on a hiring spree, paying higher bonuses to attract and retain staff, galvanised by the rise in stocks since March 2003.

However, as the 810 billion hedge fund industry continues to draw in recruits, Rajan says the labour market for large firms is likely to remain tough.

Recruitment firm Michael Page told Reuters that an analyst with four years' experience can earn up to 120,000 working for a hedge fund, compared to 50-70,000 working for a large fund manager.