Employment Special – Opalesque Exclusive: Hedge fund salary expectations for 2009 are low, but competition remains fierce – insights on positioning yourself in a job search, Moody`s: Financial sector job losses easing off, Stronger banks poach senior staff from rivals

April 2009

Negative performance in 2008 resulted in an average salary decline of 24% for most hedge fund professionals and 2009 may be bleaker yet. Many hedge fund firms face a 12-24 month positive performance climb to reach high water marks before performance fees will take hold again and that will result in a direct hit on bonuses for 2009.

Outlook is not completely dire – the buzz on “building bench strength”

With hedge funds also facing a diminished asset base, the management fees that pay for base salaries, benefits, and many other things will also be reduced in 2009. However, recruitment firms predict base compensation will not decline further but remain flat.

And yet, even with lower salary expectations for the foreseeable future, hedge fund firms will enjoy one of the most competitive job markets in its history. For those firms expecting to survive these tumultuous times, 2009 presents the opportunity to strategize for succession and strengthen the talent of their bench.

“Firms that do have cash, and firms that plan to be around for the future and want to grow, are taking advantage of the fact that they can access talent that they may not have been able to in the past,” says Markus.

Firms are looking at what a person will be able to add to the bottom line in terms of credibility with investors, relationships with investors and potential investors, etc. – all things that weren’t necessarily as significant in years past.

In fact, for professionals with a strong background, it is still important to focus on the larger picture of a career trajectory.

You: the product

Approaching a job search in 2009 will require people to focus on selling themselves as a package, presenting their strengths in multiple areas. Perhaps the best way to think about this is in terms of defining yourself as a product.


Richard Dukas, President of New York-based PR firm Dukas Public Relations, which works with many financial firms, shared some insight into the approach of rolling out a financial product and how some of these same tactics can translate into a job search.

When a product is being rolled out, the publicity strategy will likely include intensive research on the best outlets to approach for media coverage, and a team will consider how the new product fits within the framework of current events and current news. The same approach can be applied to the circulation of a resume. No matter what level position you are looking at – above all else it is important not to “dilute your brand” by blasting a resume out to every contact at once.


“The most important thing that a candidate should do is to be very focused in the way they position themselves and the way in which they approach potential employers,” Dukas says.

Research will not only help you determine where to focus your job search, but it also provides you with one of the best PR tools available – framing your information and experience in context to the firm. It may sound basic, but everybody wants to hear about themselves.

“Tell an employer why you want to work for them. Stop talking about yourself and start talking about the employer and how your experience is going to benefit their firm,” says Dukas.

In the world of finance, where terms can have multiple meanings it is doubly important to be clear and concise, whether you are speaking to a potential employer, a recruiter, or just networking at an event. Research does not only apply to those firms you are meeting with, but should also apply to every person you speak with during your search.

“Speak to the person in terms that they understand. And be as focused as possible,” Dukas says.

If a conversation reveals that a person has a background that would not necessarily mean they understand all of the terminology you are used to using in discussions, take the time to use terms they would understand. In anticipation of these situations – to avoid frustration and the chance of damaging the relationship with a possible future contact, it may be useful to develop two storylines about your professional experience: one that is high level and suitable for those who have a similar background and then one that explains and defines your skills in a simple and easily understandable way.