Wall Street's been slaughtered by layoffs. About 35,000 finance workers have lost their jobs, according to the latest count. But one segment of high finance is still hiring: hedge funds. Jill Barshay reports.
Doug Krizner: The credit crunch has decimated payrolls on Wall Street. By one recent count, about 35,000 financial pros have lost their jobs. But as Jill Barshay reports, one segment of high finance still hiring.
Jill Barshay: Hedge fund returns have been lousy this year. But these private investment partnerships are hiring and even expanding. Adam Zoia runs recruitment firm Glocap Search. He says big institutions -- like pensions -- are still pouring cash into hedge funds. And they need people to manage all that money.
Adam Zoia: Those allocations are like the Titanic. These institutions don't change their mind based on short-term market vicissitudes. They usually do five- or 10-year programs even.
Zoia says all the layoffs on Wall Street have created a big talent pool for hedge funds.
Zoia: We have several of our clients who have engaged us in sort of what you might want to call Wall Street dislocation initiatives. They can now pick up star bankers from the bulge bracket firms.
But the hedge fund business may not be the path to riches it once was. Zoia says this may be the first time in five years that hedge fund salaries go DOWN.