Derivatives pros to avoid fund managers
Fund managers' enthusiasm for derivative products suggests recruitment is on the cards. But one headhunter says derivatives-savvy bankers may not want to move.
When Financial News asked fund management firms in which product areas they expected to see business growth over the next 12-24 months, the answer was resoundingly clear: 27 of the firms polled said they expected to see growth in structured products.
Recruiters say hiring for the build out has already begun. Earlier this year, Fidelity hired Stephen Fulford from Dresdner Kleinwort Wasserstein as its first head of derivatives, for example. In February Merrill Lynch Investment Managers hired Doug Shaw, a former hedge fund manager and head of derivatives at Gartmore.
"There's a strong herd mentality in the fund management business," says one asset management headhunter. "Where the top firms go, others will follow." Fund managers will need to bulk up with everything from derivatives structurers to derivatives traders, he says.
However, Joanna Cohen, a consultant at structured products recruitment specialist Huxley Associates, says up and coming derivatives staff are unlikely to make the move. "Structurers will want to go where the work is most interesting and the products offer the highest margin," she says. "That does not mean fund management companies."
Cohen says Huxley hasn't seen a big call from the buyside to hire derivatives specialists yet, but predicts it will come. "In the same way as buyside firms have been hiring quants to avoid paying banks for quant services, they'll need to hire structurers to avoid paying for banks' structuring ability."
