Hedge funds are diving further into cryptocurrency, and the battle for talent is heating up
The Business Insider article, "Hedge funds are diving further into cryptocurrency, and the battle for talent is heating up," quoted Russell Reynolds Associates Consultant Chris Davis on the increase in demand for cryptocurrency talent in the investment-management industry. The article is excerpted below.
Some of the biggest hedge funds are diving into cryptocurrencies, accelerating the battle for crypto talent among investment managers.
In recent months, hedge funds have built out their presence in cryptocurrency and expanded their reach. Point72 Asset Management is looking for a head of cryptocurrencies, TheStreet reported in June. Large firms like Third Point, Tudor Investment, and Brevan Howard are investing in crypto, while Millennium Management has exposure to crypto through exchange-traded funds and trusts. London-based Marshall Wace is also planning to jump into crypto by investing in areas like blockchain technology, payments systems for digital currencies, and stablecoins, the Financial Times reported in July.
Hedge funds are following in the footsteps of banks and asset managers that have bolstered their crypto capabilities over the past year on the back of client demand.
Where are hedge funds looking?
The demand for crypto talent has accelerated in the investment-management industry, triggering a slew of searches for the recruitment firm Russell Reynolds Associates.
More recently, managers have been seeking senior product leaders to help build out their cryptocurrency product lineups as well as an influx of technology-related roles. Chris Davis, who co-leads Russell Reynolds' global fintech practice, recently helped fill a blockchain-technology role for a large asset-management firm.
Managers tend to put emphasis on domain expertise in blockchain or cryptocurrency. Unlike when hedge funds might poach from a rival for an investment-management role, when it comes to digital assets they're generally looking to fintechs and exchanges instead.
"If it's a product role or a tech role, they are certainly looking at smaller fintechs or blockchain-enabled exchanges versus large asset managers," Davis said.
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