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By James Findlay, Head of Relationship & Business Development
In a year where 49% of the people in the world will be heading to the polls (elections scheduled in at least 64 countries), the global landscape from a geopolitical standpoint will certainly be shifting and in turn will likely affect hiring priorities across the financial sector as institutions react to new or continued policy implemented by those in power.
Here at Venture Search, we cover markets globally, so we will hopefully be well-hedged to whatever the outcome. However, it is worth breaking down geographically what we are seeing in the market in terms of hiring trends.
APAC
Singapore
A long-standing hub for hedge funds and trading houses, Singapore has continued to offer allure to expats looking to make the most of low tax rates and an excellent standard of living. We have seen a number of US-based funds open their APAC presence in Singapore and the continued growth of smaller satellite offices already in situ. Singapore’s favorable regulations surrounding crypto trading have also meant that it has become APAC’s premier hub for digital asset trading. The only potential stifling factor of growth is the clamping down on the number of non-Singaporean PRs allowed within institutions of a certain size; however, this has certainly given greater precedence to top Singaporean national talent.
Hong Kong
The new rules surrounding taxation on the highest earning bracket have been met with some resistance from a number of hedge fund managers. However, this has only really affected the largest of book runners, with a number of these recently moving to the Middle East (where now 25% of hedge funds have a presence). The HK market has seen the most growth within purely Asian-focused investment managers, where candidates with niche local sector coverage are getting the most traction.
China
Whether trading offshore or onshore, top-quality China-focused candidates are in real demand from a number of our client groups, with systematic equities being the strategy we’ve seen in most demand. Naturally, with the bars-to-entry in mainland China still in place, this is dominated by domestic institutions or at least in some JV-style agreement.
Australia
We have had particular success in the burgeoning local Australian market, from both a relocation perspective and placing local talent. For those not currently in Australia, the sell is obvious – strong salaries, excellent standard of living, and excellent weather. But outside of these factors, the draw now includes some excellent performance from growing firms within the systematic market-making and prop trading arena. This is coupled with a number of the major multi-managers having established offices in the region.
Europe & Middle East
London
It is still the premier hub within Europe from a talent perspective. Whether hedge funds and trading firms are looking to lift talent directly from their competitors or tap into the massive sell-side talent market, London remains the best pool. There has been a lot of rhetoric surrounding the exodus of talent from London to the continent or to the Middle East. Across systematic-focused strategies and more traditional fundamental L/S, it remains the most established market, meaning it is difficult to find an established firm without some presence in the UK’s capital.
Amsterdam
Often held up as Europe’s answer to Chicago in relation to being the hub for prop trading and market making, the local financial regulations surrounding bonuses while managing outside capital mean hedge funds are a rarity. The plethora of trading houses and favorable tax implications for expats have meant that we’ve seen continued growth in the local Amsterdam market, which we don’t see being tempered anytime soon.
Denmark
Commodities (particularly energy markets) have been in boom for a couple of years now, and Denmark has seen enormous growth in the number of institutions looking to hire top talent from across Europe. What we’ve seen as a trend more recently is the increased interest in systematic commodities trading over more traditional discretionary investing, with a new wave of younger talent dominating the hiring landscape, implementing more black-box and higher frequency strategies.
UAE
Year-round sun, no tax, and now more hedge funds than you can shake a stick at – Dubai and Abu Dhabi are fast becoming two of the most desired locations for buy-side talent. Initially, the hiring was dominated by internal moves, with firms facilitating relocations for their staff that wanted to move. This has morphed into genuine build-outs, with the world’s premier funds leading the charge.
USA & North America
2024 has seen a strong start across the US fund and trading space, with the major multi-manager platforms showing increased returns and continuing to look to upgrade their talent, either by poaching from direct competitors or lifting from the sell-side.
In terms of geographic trends, opportunities in the US energy market have meant that Houston has seen a lot of movement from a talent perspective, with hedge funds expanding pods or launching new franchises as well as established trading houses increasing their headcount. Outside of just Houston, Dallas and Austin have seen continued growth, through multiple prop trading houses (both domestic and international) expanding their offices there.
The Citadel-led mass migration of funds to Miami has also continued throughout 2024, with a number of our client partners open to having teams based there. Favorable tax rates from both a personal and corporate perspective make this an even more appealing location. While many of the hires have been relocations from NYC/Chicago, we will likely see the first set of internal moves later this year.
The West Coast, long associated more with asset management over traditional hedge fund investment firms, has started to gain more traction through the continued appetite for PMs to be remote. Whether in San Francisco or LA, we’ve seen high-performing pods relocate to the West Coast.
Finally, the Chicago market still remains the global premier hub for prop trading and market making, with the possibility of the changing of non-compete legislation only increasing candidates' desire to look at new opportunities.
Conclusion
The hedge fund and prop trading world is uniquely positioned in that there is a constant expectation to beat the market even in a downturn or recession, coupled with the fact that the added volatility is seen as providing opportunity as opposed to risk. We believe that we will see continued hunger from our client base to continue to upgrade talent and expand their presence in new markets, whether that is geographic or asset/strategy.
Venture Search
Established in Dubai in 2019, Venture Search currently operates from locations in the UK, UAE, and US. We recruit for global financial services markets across Asia, the Middle East, Europe, and North America. Our coverage spans Investment Banking, Investment Management, Global Markets, Commodities Trading, Hedge Funds & Proprietary Trading, Financial Technology, and GRC (Governance, Risk, & Compliance).
James Findlay is Head of Relationship & Business Development at Venture Search, whilst also overseeing our Quants & Trading practice.