Multi-strategy hedge funds that spent heavily to attract talent over the past several years may now be feeling the strain, as turbulent markets and early losses put some of those expensive hires under pressure, according to a report by eFinancial Careers.

Headcount surged from 5,100 in 2017 to 24,000 by 2025, according to data from Goldman Sachs, but recent losses at firms including Citadel, Millennium Management, Balyasny Asset Management and Point72 Asset Management highlight a more challenging backdrop.

After years of aggressive hiring – often backed by guarantees of $30m to $50m to lure talent from rivals – funds are now in the situation whereby portfolio managers facing losses could conceivably opt to exit the fund while retaining their guaranteed compensation rather than attempting to recover their positions.