Hedge funds say securing the best expertise is growing tougher as more new entrants join the industry, with multi-strategy platforms and larger managers ramping up recruitment and economic turmoil squeezing the sustainability of some firms…

With hedge funds increasingly using alternative data and algorithms to help unearth investment ideas, and cryptocurrencies continuing to garner interest, computer coding, data science and AI expertise are now in high demand across strategies… Tech-based expertise is now a key battleground in hedge fund staffing, expanding far beyond the computer-based quantitative space in recent years, as managers running traditional fundamental and discretionary-focused strategies also look to draw on the alpha-generating opportunities offered by the avalanche of alternative datasets and algorithm processes in the hunt for yield.

Though the latest Preqin data shows that only 7.1% of hedge fund board positions are filled by women, firms are taking greater responsibility and looking to reform hiring processes and offering educational opportunities to improve diversity, equity and inclusion… Over the past 18 months, DEI has become central to conversations around hiring, specifically in relation to severely underrepresented industries such as hedge funds.  More than ever, hiring managers are aware of subconscious and unconscious biases, both of which can lead to creating teams that lack diversity.  “There’s a science that has developed around decision making to optimise it and get the best quality and consistency.

How a constantly evolving mix of hybrid and remote working, longer notice periods, changing salary structures, incentives, and company culture is potentially retooling hedge fund talent development… With so much of the hedge fund industry tied to performance, market participants acknowledge it is tricky to identify any discernible salary and compensation trends across the investment and trading functions, particularly this year where dispersion in manager returns has been pronounced.