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Hedge Fund Startups Bypassing Mid-Level Professionals

February 20th, 2018

Wall Street signMid-career financial professionals considering making a change in the competitive world of asset management should set their sights on established funds. Start-ups don't want you. Not at that stage.

"The newer the hedge fund firm," says efinancialcareers. "The less likely it will be looking to hire mid-career-stage professionals, as typically the co-founders bring over senior-ranking former colleagues and then prioritize junior hires."

New funds bring in senior-level people who have proven records of attracting clients and generating revenue as well as those to fill key operational roles critical to getting a fund up and running efficiently. Then they'll hire junior people to fill support roles.

Steve Gold, a partner here at Green Key Resources, explained the process to efinancialcareers:

“They’re bringing in top individuals across the board, a controller/CFO, the director of ops/COO and the head of risk/CRO, and you’d think the next hires would be their right-hand folks, but actually they’re going very junior, seeing where the gaps are, and then filling in the middle as the final step.”

The hiring preference goes to experienced traders and senior investment analysts from other hedge funds, Gold said.

He also noted that, “Most hedge funds are shifting their personnel at the analyst and associate levels based on their most pressing needs and then back-filling those seats – if they have someone strong covering energy, they may swing them over to healthcare, then hire someone new to cover energy."

Mid-level professionals should look for promotional opportunities where they currently work, counsels efinancialcareers, or look to established buy-side funds.

Creative Commons/ Naoki Nakashima

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