Market Overview

Steve Cohen On Hedge Funds: I'm Blown Away By The Lack Of Available Talent

Steve Cohen On Hedge Funds: I'm Blown Away By The Lack Of Available Talent
Related SPY
How The SEC's Enforcement Division Is Responding To Cybersecurity Challenges
The Mad Search For Yield: TDA's JJ Kinahan Discusses September IMX Results
Market Timing: A New Systemic, Multi-Valued Indicator (Part 3) (Seeking Alpha)

Steven Cohen, the billionaire investor and hedge fund manager, has somewhat discouraging words for finance professionals looking to find a high paying job at a hedge fund.

Cohen, speaking at the Milken Institute Global Conference on Monday said that he is "blown away by the lack of talent" of qualified individuals. He added that that is "not easy to find great people."

"We whittle down the funnel to maybe 2 to 4 percent of the candidates we're interested in," Bloomberg quoted Cohen as saying. "Talent is really thin."

Related Link: All You Need To Know From David Einhorn's Q1 Letter To Greenlight Investors

Cohen also said the hedge fund space has become "crowded," as many hedge fund managers are either employing old strategies or working under the assumption that new recruits to the firm could "magically" create profitable investments.

"This industry has been around in a real way for 25, 30 years, and excess profits get competed away in one way or another," he also said. "More people are going to enter the business and drive it down. It's starting to happen now and will probably continue to happen. That's a normal industry cycle."

Cohen also offered a glimpse into his own hiring practices. At his $11 billion Point72 hedge fund, external hires account for 20 percent of his firm, and he prefers to groom analysts and money managers internally.

Posted-In: Bloomberg Hedge Fund Employees Hedge Funds Point72 Asset Management Steven CohenHedge Funds Media General Best of Benzinga


Related Articles (SPY)

View Comments and Join the Discussion!