More hedge funds, more pay for talent

Over 170 hedge funds have launched in Europe so far this year - that's a record, one that could make hiring the right talent more difficult and push pay higher.

"The growth in the number of hedge funds is creating greater competition with regard to the talent pool, so it hasn't had a negative impact with regard to pay," says Peter Elliott, director at specialist hedge fund recruitment firm Emerson Chase City. "Certainly pay hasn't decreased - in fact it could also be the opposite. Hedge funds are having to pay more to get the right people on board."

Information provider HedgeFund Intelligence says the number of new hedge funds launched from January to June this year has increased 15%, to 172, compared to the same period last year when 150 were launched.

However, the revenue raised by hedge funds has taken a 14% dip to 6.2bn, compared to 7.2bn last year. "Companies have probably not been affected by the slight dip in revenues - in any case it is possible to consolidate resources," says Elliott. "But I see no negative impact on pay or hiring."

HedgeFund Intelligence says that year-on-year growth in the number of new European funds in the first half underlines the continued health and vibrancy of the hedge fund industry in Europe.