Hedge Funds Get 'Gazumped' in New Poaching Strategy

Posted 3 hours ago by

Bloomberg

The fight for talent in the hedge-fund industry has reached new extremes, with hedge funders using maneuvers like gazumping to grab more money for themselves, resulting in a vicious price spiral. Just how much gazumping is going on is unclear, but recruiters say some traders now are securing pay packages of 50 million or more. Clients end up footing the bill for these practices through opaque passthrough fees.