What can the alternative assets industry, and specifically hedge funds, look forward to this year?

Don Steinbrugge has a few ideas. One that will especially please fund managers is his prediction that “Hedge fund industry assets will reach an all-time high in 2021 driven by one of the largest positive net inflows into the hedge fund industry in over a decade.”

Among his less pleasing predictions is the one that the “1 and 15” fee structure will become the norm for large institutional investors. Many already have negotiated that structure. Now, even as smaller investors may have a 1.5 and 20 fee, bigger investors will expect and receive lower fees.

hedge funds

In all, Steinbrugge, the founder and CEO of Agecroft Partners, a global hedge fund consulting and marketing firm, makes 10 predictions in his article for Opalesque. For the industry as a whole, his prediction about the growth of assets under management is the most positive.

“The growth in hedge fund industry AUM will largely come from institutional investors allocating away from low yielding fixed income investments to hedge fund strategies with higher expected returns, as well as strategies that are uncorrelated to the performance of the capital markets,” he says.

That growth brings with it an increase in manager search activity. “We expect 2021 search activity to be the most robust in years driven by positive flows, pent up demand and reallocations stemming from a broad dispersion of returns.”

That search activity will be accompanies by a focus on environmental, social and governance (ESG) and diversity of the manager workforce.

“Diversity of their workforce is becoming part of the manager research and due diligence process for many institutional investors,” Steinbrugge writes. “We believe this is just the beginning of a very strong trend. Hedge fund managers will be well-served to proactively embrace diversity as a critical path to their long term success.

Also of key importance, he says, will be application of ESG principles. “The global movements in support of social justice will be the catalyst; pension funds, endowments foundations and sovereign wealth funds that make up approximately 48% of hedge fund industry assets are making their voices heard on these issues,” Steinbrugge says.

His other predictions cover the continuation of remote work and virtual meetings, a blurring of hedge funds and private equity with the two increasingly converging, increased regulatory oversight, and a greater demand for long-short equity managers.

Photo by Tech Daily | Photo by Tuesday Temptation


Green Key Unlocked: Why Green Key?

“We are always inviting new, innovative ideas,” says Brooke Stemen, Director of Talent Acquisition at Green Key. As the person responsible for interviewing and onboarding new recruiters at the agency, Brooke has several reasons why someone should want to work and grow here. If you are looking for a different recruiting experience, or simply trying to switch career paths entirely, Brooke has provided a handful of motivating reasons to consider Green Key Resources. 

1. Commission structure 

The industry standard for commission structures is 5%, but at Green Key, *it typically starts* 12%. As this is more than double, the earning potential is unmatched. We also have zero threshold to earning commission, meaning you will make commission on your very first placement. You will never have to hit a spread quota or achieve a number of placements before unlocking strong earning potential. In addition to a competitive commission structure, Green Key also promotes from within. “We push our management teams to develop their internal teams,” says Brooke. “We are very growth-focused and invested in the success of our recruiters.” With a tech-focused mission and access to industry leading sourcing techniques, employees at Green Key have unlimited opportunities to succeed

2. Flexibility 

Green Key was founded on empathetic leadership, where you are treated like an adult and granted full autonomy to build your own day and optimize your time. Brooke reiterates, “We are not driven by arbitrary numbers, like how many calls you make. We’re a results driven firm and focused on net and production, which is a system that cultivates efficiency.” Green Key is also a give and take environment. Remote and hybrid schedules allow for a trusting relationship and higher productivity. We are always centered on quality of work over quantity. 

3. Mentorship 

Because Green Key promotes from within, managers across the organization are more motivated to mentor their recruiters and facilitate growth. Hierarchies tend to break down in these relationships and promote open communication. Mentorship within various teams is a unique aspect that makes Green Key successful. The opportunity to trust and learn from seasoned recruiters leads to goals being met and a healthy work environment.  

4. Diversity & inclusion 

“Prior to Green Key, I didn’t really see myself represented in leadership,” Brooke mentions. “As a woman who wants children one day, I was thrilled to see so many mothers holding leadership positions here.” Brooke emphasizes that Green Key is a place where you can make a substantial life for yourself, both professionally and personally. If you have to attend to personal matters outside of work, that will never hinder your success or growth here. “All we ask is that when you’re here, be present and try your hardest. At the end of the day, Green Key is an agency made by recruiters for recruiters.” 

Contact us 

If you’re considering a career change, do not hesitate to connect with Brooke on LinkedIn or visit our Join the Green Key Team page. With so many opportunities for growth and advancement, this just might be the perfect place for you! 

Investment Banks May Start Hiring in Q3

Investment banks are having a strong year.

After taking belt-tightening steps last year and announcing cost reduction plans this year, the coronavirus pandemic and subsequent business shutdowns worried the industry that more draconian action might be coming.

That prospect now is much less likely. Most investment banks had a strong 1st quarter and are on track for an equally good Q2.

Reporting on positive financial news from three of the largest global banks, eFinancialCareers predicted that as long as conditions continue to improve “banks may indeed put their heads above the parapet and start tentatively implementing hiring plans later this summer.”

Writer Sarah Butcher’s optimistic prediction follows reports last month at Bernstein’s 36th Annual Strategic Decisions Conference and Deutsche Bank’s Global Financial Services Conference that banks are seeing good, even strong earnings performance.

Jamie Dimon, chairman and CEO of JP Morgan Chase said the firm’s Q2 trading returns are as strong as they were in the first quarter when they were up 32% over Q1 last year.

The eFinancialCareers report also said Deutsche Bank’s CEO Christian Sewing said sales and trading revenues were continuing to show the same strength in April and May as in Q1 when they were up 13%.

Goldman Sachs, which saw its Q1 net earnings up 89%, said it was meeting the expectations set out in January and had no plans to do more belt-tightening than it originally announced.

“Despite everything,” said eFinancialCareers, “ 2020 is turning out to be an OK year for investment banks.”

Photo by MayoFi on Unsplash