By Claude Schwab
Thinking of changing cities to land your next hedge fund gig?
If you expect New York, Greenwich and Stamford to be among the Top 5 Cities seeking and hiring seasoned hedge fund talent in 2011, you’re headed in the right direction. These three Northeastern burgs have a ‘Harvard-Princeton-Yale’ lock in the Top 5 rankings.
Top 5 U.S. cities seeking hedge fund talent:
»» 1. New York
»» 2. Chicago
»» 3. Boston
»» 4. Dallas
»» 5. Stamford, Greenwich, Westport (tie)
New York funds were far-and-away the most active in seeking and hiring experienced hedge fund talent. Given the sheer number of large funds and the industry-leading assets managed in New York, this comes as no surprise. According to recent industry estimates, approximately 41% of global hedge fund assets are managed from New York and about 45% of hedge funds managing $1 billion or more are in located in the city.
In our Top 5, Chicago, Boston and Dallas all beat out the Connecticut entries of Greenwich, Stamford and Westport, which came in at fifth place in a neck-and-neck three-way tie. Taken together, however, our Connecticut trio is a hiring powerhouse. After New York, Connecticut has the second largest number of funds managing $1 billion or more and ranks third in the world, after London, according to industry estimates.
Meanwhile, for hedge fund hiring purposes, Westport may as well be re-named Bridgewater, the mega-fund which has its multi-campus headquarters there. According to recent industry rankings, Bridgewater is the largest hedge fund in the world.
Chicago is home to a cluster of large funds, led by Citadel, that have been actively hiring in 2011. In addition, Chicago firms were hiring in the fund of hedge funds sector, as well. According to the May 2011 Eurekahedge Report, funds of hedge funds saw their first quarter of net positive asset flows since the first quarter of 2008.
In Dallas, Highland Capital led the hiring charge, as they looked to fill various personnel needs including fundraising/marketing, investor relations, investment professionals (analysts), and—no surprise given the number of hiring mandates—recruiting.
San Francisco is missing in action and Minneapolis is an up-and-comer
San Francisco was noticeably absent from the Top 5 List, but would have made the cut if one includes the surrounding areas of Palo Alto, Redwood City and Berkeley.
Minneapolis didn’t make the list either, but hiring patterns indicate that Minnesota is the new up-and-comer hedge fund state, with a fistful of firms actively luring strong senior talent. Pine River Capital, Waterstone Capital and Whitebox Advisors are all actively hiring in 2011.
Claude Schwab is founder and chief executive of HFObserver.com.