If it seems like a startup hedge fund closes every day, they don’t. They’re closing at a much faster rate than that. What’s left are career casualties: smart, rich hedge fund managers who, for whatever reason, couldn’t cut it on their own. Don’t feel too bad though. Failed startup hedge fund managers are at the top of the list when it comes to recruiting.
Large hedge funds like Marshall Wace, Millennium Management, CQS and BlueCrest Capital Management are swallowing up portfolio managers that were forced to shutter their own shop, according to Financial News. Failing to succeed on your own is no longer looked at as a red flag in the eyes of larger shops due to the number of obstacles facing smaller shops, including increased regulation and a less-than-hospitable fund raising environment.
Marshall Wace, for example, plans to hire around a dozen investment staffers over the next few years as it moves its offices from Connecticut to New York. One Marshall Wace staffer told Financial News that it plans on taking advantage of the growing talent pool of portfolio managers who tried and failed to set up their own fund.
The startup environment has gotten so tough, many aspiring teams of portfolio managers are scrapping plans to launch their own firm, choosing instead to join a large company and establish a platform fund.
As we mentioned last week, long/short funds are where you want to be, at least in the current volatile economic climate. Activist hedge funds are doing well in their own right.
IBD Intern Mole: Week Four (eFinancialCareers)
“It seems to be the more senior staff who are quite often the least politically correct and most stereotypical bankers around,” said our investment banking intern mole.
We’re Good, Thanks (Fox Business)
The trial involving former Goldman Sachs trader Fabrice Tourre just got a bit stranger. The defense called zero witnesses to the stand before resting. An effort to exude confidence perhaps?
Barclays to Issue New Shares (Reuters)
In an effort to boost its capital ratios, Barclays on Tuesday will raise nearly $8 billion by selling new shares. Bad for the investor, whose shares just got diluted, but good for the employee, who didn’t get fired to cut costs.
Business as Usual, Kind Of (WSJ)
The federal government is storming after SAC Capital, but the insider trading charges won’t force the hedge fund to cease operations, at least not now. The government is negotiating an agreement with SAC that would allow the firm to continue trading during the criminal proceedings.
M&A Slowdown (Bloomberg)
M&A fees were up in the first half of 2013, but the totals don’t paint the full picture. With the Fed’s stimulus decision still to be determined, the pace of new deals is slowing considerably. Expect a sluggish second half.
Whatever You Do, Don’t Miss (WSJ)
Companies that beat second quarter revenue and net income expectations saw their share price rise, on average, 2.3% over the following five days, in line with historical averages. Companies that missed expectations got killed, with their share price dropping 5%, roughly double the historical average.
Buzz Around the Office
Breaking Up for Dummies (CNET)
Want to break up with your significant other but don’t know how? There’s an app for that. BreakUp Text lets you choose from a series of long, heartfelt messages and click send. Convenient and classy.
List of the Day: Cover Letter Killers
On Wall Street, cover letters are often more important than resumes. Here are three tips to keeping yours out of the trash.
- Never include excuses.
- Avoid revealing your ignorance.
- Don’t reiterate resume content.
(Source: Wall Street Oasis)