Ilana Weinstein on Hedge Fund Talent War, Bonuses

The video discusses the current state of hedge funds, focusing on hiring trends, performance comparisons between multi-managers and Tiger Cubs, and the challenges faced by macro funds despite strong performance. It also covers compensation issues within hedge funds, particularly in light of poor performance, and examines the crossover model in private equity, highlighting the difficulties in managing risk and valuation.

What is the main challenge faced by large hedge funds like Tiger Global?

• Lack of investment opportunities

• High employee turnover

• Poor performance and hiring freeze

• Excessive regulatory scrutiny

How have the big multi-strategy managers performed compared to the Tiger Cub universe over the last three years?

• They have underperformed significantly

• They have produced higher returns

• Their performance has been similar

• They have faced more losses

What was a notable trend for macro funds despite their good performance?

• Increased hiring

• Significant outflows

• Stable inflows

• Decreased competition

What is a key factor investors look for in macro funds?

• Short-term gains

• Consistency over time

• High-risk strategies

• Low management fees

What is a major issue in the hedge fund industry's compensation model?

• High base salaries

• Netting of individual performance

• Lack of bonuses

• Limited career growth

How do hedge funds with poor performance plan to retain key employees?

• Offering higher base salaries

• Providing increased points

• Reducing working hours

• Offering stock options

What challenge does the crossover model in private equity face?

• Lack of investor interest

• Difficulty in managing both public and private investments

• Excessive competition

• High regulatory barriers