Hedge fund sales still safe

The burst of growth in the hedge fund industry is slowing, but recruiters say hedge fund sales people shouldn't be losing any sleep.

"The prospects for hedge fund salespeople remain very strong," says Mark Horlock, a consultant at search firm Alexander Mann Global Markets. "Sales people who cover hedge funds are likely to see stronger remuneration packages than those who cover institutions only, because hedge funds are more profitable customers. A good salesman at a top tier house will certainly be getting paid a million dollars, and there may be one or two getting more than that."

An article on Bloomberg today voices concerns over whether the hedge fund industry can sustain the rapid growth it has seen in the past three years. However hedge funds have diversified to encompass such a wide range of investments, which may mean there is life in the sector yet.

Indeed, Horlock says salespeople can look forward to healthy pay packets on the back of this diversification. "Their cash is climbing because they are not just selling cash equities, but cross selling other asset classes."

So when's the best time to make a move? At this time of year, Horlock says banks might continue to be opportunistic about hiring the very best, but he says most will want to hire in Q1 2007 and will start revving up their recruitment process in October and November.