eFinancialCareers

Hedge funds are still scaling back in Asia and their former employees are no longer hot property on the job market.

GSO Capital Partners, which is owned by Blackstone Group, is the latest fund to close its Hong Kong investment desk after failing to find enough attractive opportunities in the region.

HBK, Ramius, GSA Capital, DB Zwirn, Marathon, Newtonian Capital Management, Fortress Investment Group and Andor Capital have also cut back in HK in the face of rising redemptions. Concordia, Marathon and Jabre are among those to have suffered in Singapore.

“There are few positives in the current employment market. A lot of hedge fund people are looking for work. A year ago, I knew about three dozen funds that were hiring, now it’s down to three,” says Matthew Hoyle, director of search firm Matthew Hoyle International.

Gary Lai, manager, financial services at recruiters Robert Walters, adds: “A lot of funds have already done their redemptions. The worst of the damage might already have happened, so redundancies might not be so drastic this year. But they still won’t be hiring. There will be a long period of inactivity.”

And what about those who the hedge funds have already cast aside? Hoyle says the employment outlook is bleak for CB arbitrage and long/short equity people. “You can’t exactly move to an investment bank in the current market.”

Risk and IT professionals, quants and fund accountants are in a better position to find new work, as are distressed debt analysts, who could potentially go to private equity firms or specialised distressed debt funds, according to Hoyle.

There are "pockets of opportunity" for sales and marketing, and business development people with good networks, says Lai. And some former employees of the large funds are starting up their own mini funds, with assets under manaagement typically between US$10m and $30m. “But these are just two or three-man bands and the founders usually only bring in people they know.”

But never fear if you just can’t get a job. “It’s unlikely you will have to hand back bonuses. At worst you will be out of work for a year, so you can learn Mandarin or go snowboarding,” says Holye.

One former Hong Kong hedge fund manager has apparently embarked on a tour of countries whose currency has collapsed, so he can stay in five star hotels for less than US$100 a night. “Apparently he started in Korea, went through Russia to Iceland and South America after that. Next stop is rumoured to be London,” adds Holye.

Do you have any hedge fund horror stories? Let us know below.