Hedge Fund Hiring: A Common Frustration
At Laz Partners, we’ve completed over 180 front-office placements since inception, from junior analysts and PMs to CIOs leading £100bn+ AUM teams with dozens of direct reports.
One trend that stands out (and may resonate with many who’ve interviewed with hedge funds):
Over 50% of candidates we’ve spoken with/worked with who were verbally told at some point in their career (directly by a hedge fund—usually a multi-strat) that they would receive an offer ultimately found that the offer never materialized. They were told an offer was coming—only for it to disappear.
We started informally tracking this metric about three years ago, and the real number might be even higher.
As a caveat, it is worth noting that we have close relationships with a wide number of PMs, APMs, Strategists, and Analysts across asset classes & strategies who are working in great pods/set-ups, love their jobs, and ultimately go on to have really exciting 10-20+ year careers in hedge funds. A lot of this will depend on the firm, the pod/team (e.g., has the team been around for many years & is it an established team), and the people & culture.
How Our Clients Compare:
I won’t name and shame hedge funds—many of our hedge fund clients are actually great—but here’s what we believe is happening:
1?? Keeping options open: A tactic to keep candidates “warm” while firms explore other options.
2?? Maximizing optionality: Many hedge funds like to retain as much optionality as possible in a hiring process, even if it comes at the expense of damaging their reputation with a percentage of the market.
3?? Lack of transparency: Unlike many of our other top non-hedge fund clients—where we’ve successfully placed multiple front-office candidates—firms like Apollo, Aviva Investors, UBP, BNP, and Pictet (to name a few) handle hiring very differently and in a very professional manner.
If they are unsure about a finalist (and have other preferred candidates in the pipeline), they tell us to hold off on rejecting them. However, they never ask us to mislead candidates into thinking an offer is coming.
They also never tell a candidate in person that they will receive an offer unless it’s 100% happening.
This is a stark contrast to many hedge funds, where offers are often dangled but never materialize.
One caveat:
Sometimes, a PM in a pod actually really wants to hire someone, but senior management later vetoes the offer. While this happens, it’s still an unacceptable practice—however, one that many have come to accept as part of the industry.
Bottom line:
If this happens to you, don’t take it personally. It’s common, and you’re not alone.
