The biggest trend in the hedge-fund industry is that the hunt for top traders and investment ideas has expanded beyond firms’ four walls.
The ongoing war for talent and fast-moving markets has the industry’s biggest managers investing in externally run funds and paying outside firms for their ideas, Business Insider has reported. The goal of this outward push is the same as every fund’s main objective: To find market-beating returns wherever they exist.
A review of data gathered from institutional investor data provider Old Well Labs, regulatory filings, media reports, and industry sources shows that these funds are putting their money into a proven pool of talent: firms run by former Citadel portfolio managers.
At least 12 funds run by onetime Citadel traders have backing from the multistrategy peer set of Ken Griffin’s firm, Business Insider’s…
