MSN MoneyCentral- A growing band of independent hedge fund executives are returning to Wall Street, where many of them first cut their teeth, as the search for long term capital, the desire to buildmore than a short-term money-making machine and the need for resources force them to reconsider their career paths.
At the same time, investment banks and other financial institutions are helping to push this trend by either investing directly in hedge funds or just poaching individual executives. A prominent example of the latter is Morgan Stanley executive Stuart Hendel, who late last year returned to his alma mater as global head of prime brokerage after a stint as chief operating officer for Eton Park Capital Management, the hedge fund set up by former Goldman Sachs star Eric Mindich.
But hedge fund managers such as Mr Hendel are used to being paid very well, and banks are increasingly electing to take stakes in hedge fund companies, or buy them outright, rather than headhunting the individuals.
“If Wall Street wants to attract these people in a way that is acceptable to shareholders and boards, they are not going to do it by paying hedge fund-like salaries – so they are resorting to acquisitions,” said one New York-based hedge fund banker.
The Wall Street giants then offer these talents not just the backing of a large organisation, but in some cases senior roles at group level to lure them into staying.
