The Hedge Fund Comeback
You can't keep a good hedge fund down
This week, we collaborated with Hedge Fund Alert to track hedge fund hiring trends as people return to offices. Our labor market analysis shows that after a dip following the pandemic, hedge fund hiring rates in 2021 are greater than they have been in 8 years and are continuing to rise sharply.
Looking at the headcount growth of certain roles in 2021 versus 2020 using the Revelio Labs job taxonomy, we see that there is a strong growth of senior roles with engineering and technical focus. Traditional banking roles, which are still strong in absolute numbers, are seeing a relative decline. This may be due to the industry’s growing focus on algorithmic trading.
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When inspecting the share of incoming employees hired for senior level positions, we see that hedge funds are hiring a more experienced engineering workforce in comparison to their finance workforce. Like we saw a few months ago in The War for Talent: Hedge Funds vs Big Tech, we continue to see that hedge funds are poaching these senior engineers from big tech.
- Hedge fund hiring rates are at an all time high, with a monthly hiring rate of 3.6 percent, our labor market analysis shows.
- Utilizing the Revelio Labs job taxonomy, we find that the fastest growing roles are senior software engineers and other tech-focused roles, consistent with our earlier newsletter.
- The incoming engineers tend to be more senior than finance focused roles.