As performance gets better hedge funds again recruit best managers

After a hard 2008 year for the whole financial system and investment industry in particular hedge funds started hiring new personnel and they have quickly taken a number of the most talented managers. Last year hedge funds suffered high losses with 1,500 portfolios closed according to Hedge Fund Research, as performance slumped and clients pulled out cash.

But now the results improved and redemptions slowed which made some funds confident enough to begin enlarging its staff particularly with marketing executives to help lure back assets, operations staff and fund managers in popular strategies.

"Things have definitely turned around. Hedge funds are hiring and prop desks are hiring," said Bob Olman, founder of recruitment firm Alpha Search Advisory Partners. "Volume is up threefold from the first quarter.

"The number one role is marketing. It's also very active in distressed debt and credit, equity long-short, global macro... Surprisingly, U.S. equity statistical arbitrage and systematic trading are hiring."

As a result of falling asset levels and lower performance many investment funds had to cut costs and save on staff. For example last November GLG Partners laid off 15% of its workforce while having reduced payouts to temporary and contract staff.

This year brought a significant improvement in performance and in the first seven months of 2009 hedge funds returned 9.9 percent, according to Credit Suisse/Tremont.

Firms such as Citadel, RBC Capital Markets, Artradis and Tribridge have all recently hired staff in hedge-fund-related roles.