US hedgies flock to London
UK hedge fund recruiters report a surge in applications from North American hedge fund analysts and traders seeking work in the London market.
"In the past two or three months we've seen an influx of applications coming from senior people in New York or Canada," says Lee Bevan, a consultant at hedge fund specialist Mirage Recruitment. He adds: "Bonuses in the City are going up strongly and people want London on their CV. If you've worked for one of the large established funds here, it's practically an opportunity to write a blank cheque."
On average, Bevan says basic salaries are 10,000 to 20,000 higher in London than the US. Similarly, he says candidates can command bonuses that are up to 25% higher.
The Economist this week highlights the fact that the London hedge fund market is growing faster than that in New York. In 2005 it says British funds generated returns averaging 16.5%, almost twice those of their American counterparts.
Bevan says UK-based hedge funds don't entirely reciprocate US professionals' growing ardour. "There are work permit issues," he says. "You'll need to be eligible to work in the UK - there are generally enough experienced people already in the European Union to take these roles."
