IDW Group Founder and CEO Ilana Weinstein Talks Hedge Funds
Apr 5, 2024
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Ilana Weinstein, CEO of IDW Group, discusses the resurgence of stock-picking hedge funds, highlighting the performance of Schonfeld Advisors and AQR funds. The conversation explores fund performance, talent attraction, pass-through fees, talent development, and trends in credit strategies.
Stockpicking hedge funds are regaining popularity due to improved performance, with Schonfeld Advisors leading the pack.
Top talent in hedge funds values long-term growth opportunities and skill development over immediate compensation.
Deep dives
Success in Multi-Manager Strategies
Multi-manager strategies in the hedge fund industry, particularly those led by large established managers like Citadel and Point 72, have seen a resurgence after a challenging period. Schoenfeld Advisors stands out as a top performer this year, signaling a potential shift in the industry. However, caution is advised due to the risk of overexposure and concentration in certain funds. Consistency of returns and ongoing investment in talent development and infrastructure are crucial for long-term success in hedge fund management.
Talent Acquisition and Development in Hedge Funds
Top talent in the hedge fund industry prioritizes developmental opportunities and long-term growth prospects over immediate compensation. The ability to enhance skills, access developmental resources within the firm, and navigate a conducive path towards achieving career goals are pivotal considerations. Building internal talent pipelines and nurturing homegrown talent, as seen at Citadel, fosters sustainable alpha generation and reduces dependency on external talent recruitment. Pass-through fees and a focus on sustainable performance over sporadic success are becoming more significant in talent attraction and retention strategies within hedge funds.
Stockpicking hedge funds are coming back into favor for the first time in two years after a turnaround in their performance. Schonfeld Advisors was the best-performing large multistrategy hedge fund in the first quarter....and multiple AQR funds saw double-digit returns so far this year. Bloomberg's Sonali Basak gets a gauge of the whole industry with Ilana Weinstein, founder and CEO of IDW Group -- which finds talent in the hedge fund space.