We are now in the final quarter of the year and the financial services sector is intensifying its hiring efforts, especially among Hedge Funds, Prop Firms, and Family Offices. This time of year sees a surge in recruitment activity as these firms position themselves strategically for 2025, aiming to have all key roles and strategies in place by year-end. However, the current hiring landscape reflects significant competition, shifting compensation models, and a strong emphasis on particular skill sets and strategies.
Hiring competition has rarely been fiercer. Firms are competing for high-calibre talent, especially those with a track record in revenue generation. Securing exclusivity with top candidates is uncommon, meaning that in-demand professionals are frequently fielding multiple offers. This demand inevitably drives up compensation for elite roles; however, there’s been a noticeable shift in sign-on bonuses, particularly in markets that have recently faced challenges. Candidates are still in high demand, but some firms are exercising caution with financial incentives, adjusting their offers based on market conditions.
The current hiring trends reveal a strong preference for quant and systematic strategies, especially within Equities, Delta 1, Relative Value (RV). Firms are leaning towards these data-driven approaches, which often promise resilience and adaptability in fluctuating markets. Although Fixed Income remains popular, there’s a noticeable lack of interest in exotic or highly structured Fixed Income strategies—firms are prioritising transparency and simplicity over complexity in these investment strategies.
In addition to this, Commodities strategies are still popular as are some more traditional fundamental strategies, especially in the Event / Catalyst Driven space
A buy-side, dollar PnL (profit and loss) track record is now considered a baseline requirement. Hiring managers are typically looking for a three-year track record for Portfolio Managers (PMs) and at least five to ten years for Senior PMs. A solid Sharpe Ratio—generally 1.5 or above—is another standard requirement, reflecting the emphasis on both profitability and risk management. Beyond technical expertise, firms are placing a premium on leadership qualities, especially among Senior PMs. Candidates who can build and lead pods or teams while contributing to broader business strategies are increasingly valued. These PMs not only bring investment insights but are seen as crucial to shaping the future direction of the business.
Gender diversity remains a significant concern within the financial services sector, where the male-to-female ratio is still skewed. While perceptions often suggest otherwise, many Hedge Funds, Prop Firms, and Family Offices are actively seeking to address this imbalance. There is genuine interest in attracting female investors and senior-level talent, signalling a positive shift towards more inclusive hiring practices within the sector. The industry is gradually recognising the benefits of diverse perspectives, especially in roles where strategic thinking and decision-making are critical.
Transparency is a recurring theme among firms seeking new hires. Today’s financial institutions are increasingly prioritising clear and straightforward strategies, aligning with investor demands for visibility and accountability. This preference extends to the candidates themselves, who are expected to not only understand but articulate their investment edge with confidence and clarity. Prospective hires need to demonstrate an in-depth knowledge of their chosen strategy and convey genuine enthusiasm for its potential.
Q4 has always been a busy period for hiring in financial services, and this year is no exception. Firms are under pressure to secure top talent in a highly competitive market, focusing on candidates who bring proven track records, leadership capabilities, and a commitment to transparency. While compensation structures may be adapting to recent market performance, demand remains high for specialists in systematic and quant strategies. Moreover, the drive for gender diversity is gaining traction, further indicating that the sector is evolving.
For candidates aiming to stand out, the message is clear: know your strategy, showcase your results, and be ready to lead.
If you are considering a change, and want to weigh up your options, chat with Warren Hilton today, or check out the latest job openings here.
