If you're a hedge fund professional seeking work in investor relations, client service or support functions, new jobs may soon sprout within fund companies with less than $5 billion under management. Such relatively small fund managers say they're looking to add staff, after suffering heavy redemptions this year.
If that sounds like an odd combination, consider: While funds that manage between $1 billion and $5 billion saw 30 percent of their assets flee in the first nine months of 2009 (while attracting gross inflows of 18 percent), investors rewarded mid-size fund groups with $5 - 10 billion under management with net inflows amounting to 5 percent of assets, a Barclays Capital survey of fund managers revealed. The $5 - 10 billion group pulled in all $150 billion of new money that flowed to the hedge fund industry through September. (The largest fund firms Barclays interviewed, with more than $10 billion in assets, saw relatively little money go either in or out.)
In recent years the hedge fund client base has become increasingly institutional, with private and public pension funds now making up a significant share. And pension funds "tend to prefer bigger hedge funds where they expect a more stable infrastructure than at smaller firms that may just be starting out," Reuters observes in its summary of Barclays' report. That's why the smaller firms, with less than $5 billion assets under management, said they plan to hire more staff to help raise more funds.
The fund firms in Barclays' worldwide survey manage a combined total of $387 billion.
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