The Art of Landing a Hedge Fund PM Role: Insider Strategies Revealed.

Frederic had 3 different Hedge Fund PM interviews recently, that he thought went well.

Two months have now passed, and he’s heard nothing back, despite chasing, and despite using a couple of different headhunter who said they had mandates with these 3 funds.

Frederic's experience, marked by frustration, is one that many other prospective Hedge Fund PMs encounter

But why does this happen, and seemingly so often ?

Although there are headhunters with real mandates and relationships with HF decision makers, there are also many who are opportunistic in their approach without a firm mandate nor strong relationship.

Whilst there is absolutely nothing wrong with this opportunistic approach, it does impact the candidate.

I had a chat with Jason Kennedy, CEO of the Kennedy Group and a renowned recruiter in the Hedge Fund space with a 20+ year track record of placing hundreds of candidates into Hedge Funds:

Q: What happens once a candidate is put forward to a Hedge Fund via a headhunter ?

A: Once a candidate profile is put forward to business development, it becomes the headhunter’s candidate and it will remain that way for at least 3 months.

Every time there is an update from the headhunter on the candidate’s situation, the 3mth period resets.

This can mean that if you, as a candidate speak to another headhunter with a mandate or a strong relationship with decision makers to progress your chances, you’re unable to as the Hedge Fund has assigned you to the original headhunter.

Hence the right representation up front is crucial.

Q: What about speaking to different funds via different headhunters ?

A: This has proven to be a bad approach, with very good PM profiles suffering and not progressing as a result. The market is small & people talk, hence someone who’s spoken to many headhunters and funds, and is still on the market, can be wrongly perceived to be desperate to move which is a red flag for decision makers.

Q: Why does the level of a headhunter’s relationship with the hedge fund matter ? Surely it’s purely down to the candidate’s performance/ability ?

A: If only. Hedge Funds are inundated with profiles, CVs, investment strategies. They’re overwhelmed and it’s hard to differentiate. Someone with deep relationships has the ear of decision makers, can understand their needs, preferences, way of thinking in a way that the candidate can be positioned in a way that will resonate & likely be seen.

Q: What’s the best tactic then, based on your 20+ years of experience ?

A: Just like a professional footballer has one agent that they carefully select, a PM or aspiring PM needs to work with one headhunter that they carefully select, who can represent them effectively with multiple “best-fit” hedge funds. With one recruiter controlling the process and narrative, one who knows what they’re doing & with deep relationships & know-how, the perception goes from “desperate to move” to “an in demand candidate who must be hired asap before they’re off the market”. There is an art to this process, and it’s something I’ve done hundreds of time for my candidates.

Q:? Can you give us an example of how you initially engage with candidates ?

A: We recently had the opportunity to work with a candidate named Carl. When we approached Carl initially, he was hesitant to talk; he was doing well in his current position and didn't see a reason to move. However, we knew that the most content professionals are often the best candidates. So, we encouraged him to have a preliminary discussion with us, highlighting that understanding his career landscape could be beneficial for future opportunities.

During our meetings with Carl, we went beyond the basics of his resume. We delved into his professional journey, his aspirations, and what he truly valued in his work environment. It was crucial for us to understand him as a person, not just as a candidate. This approach is a cornerstone of our philosophy at the Kennedy Group, where we focus on the long-term success and satisfaction of the people we place.

As we got to know Carl better, he shared his ideal role criteria, which included a position that allowed him flexibility in location, provided resources to implement his strategy, and offered compensation that would make a move worthwhile.

Q: Ok, it seems that regardless of a candidate wanting an immediate move, there is a benefit to meeting way before that. How did Carl’s story evolve ?

A: A few months later, when the timing for both Carl & the ideal funds for him were more optimal, we connected him to two hedge funds that best aligned with his goals. Our role then shifted to preparing him for each stage of the interview process.

We worked closely with Carl to refine his business plan, ensuring it was tailored to the buyside perspective. We prepared him meticulously for each meeting, providing insights into the personalities and priorities of the individuals he would be meeting with. Our coaching also extended to risk interview scenarios, ensuring Carl was equipped to handle any challenges that might arise during the interview process.

Q: So did Carl receive an offer he was happy with ?

A: Carl ended up with 2 offers on the table. We created an arbitrage for him by understanding deeply his value, and then advising him on how to extract the best value, fund and role for himself, which means not necessarily chatting to one fund. We then guided him towards the best deal, based on where he’ll have the best success and longevity.

But our involvement doesn’t end there. We assisted him in the negotiation process, ensuring he received a package that met his needs, including the resources and relocation to Dubai, as he desired. We also guided him through the resignation process and supported him during his garden leave, ensuring a smooth transition to his new role.

This comprehensive approach, from initial contact to post-placement support, is what sets us apart. We believe in building a relationship with our candidates, acting as a business manager throughout their journey, and ensuring that they're not just placed in a role but are set up for lasting success and satisfaction.

Q: I've heard many candidates say, "Let's talk if and when there is a concrete opportunity." What are your thoughts on this approach?

A: This mindset can actually be a hindrance to a candidate's success. The key to a successful placement, especially in high-level roles like hedge fund PMs, is preparation and relationship-building well before a concrete opportunity arises. We view our role as akin to a business coach. By the time a specific opportunity comes along, we are already deep in the process of preparing a candidate we've come to know thoroughly, focusing our efforts on guiding them through the hiring process and ensuring they are the top choice.

Many candidates might assume that our job is to present as many potential candidates as we can to the hiring fund and see who gets selected. But that's not our approach. We believe in quality over quantity. If we haven't had the chance to really understand a prospective candidate's strengths, aspirations, and fit for a role, our attention will naturally gravitate towards candidates we have already vetted and developed a relationship with. This thorough, hands-on coaching throughout the process is what maximizes their chances of securing the role. It's about creating a strategic alignment between the candidate's capabilities and the hedge fund's needs, something that requires time and thoughtful preparation.

Q: Do you also manage to place candidates in 'non-advertised' roles?

A: Absolutely, and in fact, a majority of hires, especially in high-level positions, are made this way. Our role extends beyond just matching candidates to open positions; it involves a proactive approach where we prepare a candidate’s business plan and then strategically approach the right funds to 'create the need' for their skills and expertise.

Relying solely on advertised openings can be a limiting strategy for candidates. Many of the most fitting and rewarding roles are filled through networks, relationships, and by demonstrating to funds the unique value a candidate can bring, even if they weren't actively looking to fill a position. By waiting only for concrete openings, candidates significantly reduce their chances of finding the best fit for their skills and career goals. Our approach is about understanding a candidate's strengths and potential, and then actively seeking out opportunities where they can thrive, often in roles that were created specifically in response to their unique profile.

Q: Finally, what are the top qualities hedge funds are currently seeking in PM candidates?

A: They’re looking for candidates who have thought about & analysed a strategy that has worked for at least 3 years, with a good sharpe ratio (>1.5). There must be a clear, systematic process behind the strategy. If it’s someone from a bank, then someone who backs themselves to be able to be able to run a fully discretionary book with no client flow, with a clear plan around trade sizing, entry/exit points & risk management. If you’re not market neutral, then GMV is important as well as your return relative to GMV. I can go into much more depth on a case by case basis.

So in summary, if you’re an aspiring PM, or an existing on thinking of moving, then the right representation is key.

Resist the temptation progress with incoming calls from headhunters you don’t know until you’ve done your homework.

There have been too many cases where strong candidates have become stuck for months in processes due to using multiple headhunters, and those without a strong track record of placing candidates.

Ask questions to understand the level of a headhunters relationship, with whom specifically (get names), ask for examples of placed candidates, ask to see outlines of business plans, get an understanding of the coaching they provide for interviews & if possible do reference checks with recently placed candidates.

The earlier you start planning for a potential transition, the much better placed you’ll be to succeed.

Cheers,

Mani

P.S. If you’re an aspiring PM, or an existing one, DM me for a free consultation & a tailored intro to Jason for you to help give you the best possible chance, when the time is right for you.

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