Here are some hedge funds that should really be hiring

Banks aren't having a good time and nor are hedge funds. The past quarter was one of the worst ever quarters for the hedge fund industry and September was one of the worst ever months. As a result, many hedge fund recruiters are not answering their phones and those who are, are doing so with a deep weariness that speaks of long hours trying to place candidates no one's really interested in. "We're having to work three times as hard," complains one, "there are lots of candidates but no one wants to hire them."

In the circumstances, now may not seem the time to try for a hedge fund job. Now may seem the time to keep your head down in the job you're in. But that might be to miss opportunities that are out there, especially in distressed debt funds.

Last week, the Financial Times pointed out that London is attracting distressed funds from the US which want a European base. Recruiters confirm that such distressed funds are actually hiring.

"We're seeing a strong focus on sales and asset raising roles at the moment," says Peter Elliott at hedge fund recruiter Elliott James Consulting. "Hiring is in some of the more flavour of the month areas, like credit and distressed debt. Funds want people who've got a transferable client base and can sell to a trusted network."

"Most of the work I'm doing is with distressed funds," confirms a headhunter specialising in FICC roles. "There are hedge fund opportunities out there," also agrees the London head of one international search firm. "But they're mostly hedge fund to hedge fund. Funds need an audited track record and bank traders don't have this."

If you have a transferable client base, trusted network, or audited and impressive investment track record, where should you be sending your CV? We suggest you try the following:

1) Stone Milliner Asset Management

Quoi?

A new London hedge fund that's being set up by top Moore Capital traders (Jens-Peter Stein, Chris Nicoll, and Kornelius Klobucar) plus their team (mostly from Moore and Morgan Stanley). Currently awaiting FSA approval, expected to open in January with around $1bn under management.

Strategy: Global macro.

Who they might hire: People from Moore Capital, people from Morgan Stanley. Has just hired a COO and is said to be adding staff before its launch.

2) Hengistbury Investment Partners

Quoi? A new fund that's being set up by Stuart Powers of the Children's Investment Fund. He's already hired three analysts (one from Powe Capital, one from Richmond Capital and one from Lansdowne Partners) and a COO (Jon Sharpe) from prime services origination at BarCap. The fund's expected to launch in January with up to $600-700m under management.

Strategy: Global long/short equity.

Who they might hire: People from BarCap.

3) The Baupost Group

Quoi? A well known US distressed situations fund, set up in 1982 by 'legendry investor' Seth Klarman, known for his lively letters to investors. Now setting up in London, although not yet authorized by the FSA. The London office is being managed by Jim Mooney.

Strategy: Distressed situations.

Who they might hire: Baupost declined to respond to our request for information on their hiring aspirations. However, back in May, Bloomberg spoke to an unnamed employee who said they were targeted external hires to build the London office.

4) Centerbridge Partners Europe

Quoi? A US private equity fund focused on distressed situations. Has just opened a London office, which gained authorisation from the FSA in August.

Strategy: Distressed situations.

Who they might hire: Centerbridge didn't respond to our request for information on its hiring intentions in London. Emily Bastin is thought to deal with recruitment here.

5) Marathon Asset Management

Quoi? A US credit fund that's been in London since 2002 but is said to be focusing more attention on European distressed investments. Operates here as MCAP Global Finance, not to be confused with this. 125 employees under total and $10bn under management.

Strategy: Global credit manager.

Who they might hire: Distressed specialists, click here.