In addition, qiaoshui also delayed the start-up time of some new junior employees until next year. Because more employees work from home, the company no longer needs the same number of support staff, and new technology is changing the type of people needed to serve customers, Mr. Qiao said.
As the worlds largest hedge fund, what is the signal of the layoff? Some industry insiders said that with the increasing impact of the epidemic on the U.S. economy and the performance is lower than expected, there may be more financial institutions joining the ranks of layoffs on Wall Street.
At the end of June, a report released by Johnson associates Inc., a compensation consulting firm, showed that Wall Street could cut bonuses by 20% to 15% this year and cut jobs sharply.
Due to its outstanding achievements in the past and the popularity of the principles in China, qiaoshui is well-known in China. However, the bridge water fund has also begun to lay off staff recently.
It is worth noting that some employees who have worked for more than 15 years at the zoom video conference were fired. In addition, qiaoshui has delayed the start-up of new junior staff in its research, account management and trading departments until next year. People familiar with the matter said the company wanted to avoid allowing new employees to join the company remotely. As of 2019, qiaoshui has about 1600 employees.
Although this will result in a higher than normal turnover rate this year, it will not be much higher than normal, and we will continue to invest and hire in key areas, leaving employees with generous severance payments and extended health insurance. Qiao Shui said in an email statement on Friday.
However, qiaoshui has been sued for compensation. Eileen Murray, a former co chief executive of the bridge water fund, sued the company on Friday, saying the company threatened to refuse to pay her deferred compensation because of her earlier public complaint of sexism.
In the first half of the year, the scale shrank by nearly 200 billion yuan
In the first half of this year, there was a rumor that bridge water burst in the market, which was later confirmed as a rumor. However, due to poor performance, bridge water this year has indeed been questioned by the market.
It is understood that as of the end of June, the assets under management of qiaoshui have decreased from 168 billion US dollars at the beginning of the year to 140 billion US dollars, and the scale has shrunk by about 200 billion yuan.
According to the Wall Street Journal, Bridgewaters flagship fund, pure alpha, lost 13.6% in the first half of the year, erasing gains over the past five years. In the first half of this year, American hedge funds lost an average of 3.49%, according to HFR data. Obviously, this achievement of bridge water is lower than the market average level.
Qiao Shui points out in the latest research report reflection in war speed, that the United States spent three years and seven months in the great depression, one year and six months in the 2008 financial crisis, and only one month in the current crisis. At the time of the pandemic, the stimulus from the Federal Reserve and the fiscal authorities was so rapid and so great that the stock market fell for only a month. Now, once again, stocks are at their pre crisis peak.
In other words, time is not the right concept. Today, the most important factor for investors is the causality sequence, which occurs so fast. The biggest causal driving factor is the degree and speed of policy response and its effectiveness.
The difference between the market and the real economy will be an important thing. Once the virus subsides, the recovery of the market and the fluctuation of liquidity will help to stimulate economic growth, but the economic gap will require funds to pull down the market. Finally, they will reconcile, but the nature of the reconciliation will depend on how policymakers pull the leverage. Over time, extreme fiscal and monetary coordination will link the market to the economy: as inflation increases and real asset yields fall, nominal returns in the economy will rise, but nominal values may be positive.
On July 22, Qiao Shui Dario also published his latest long article. He looked at the economic war of great powers from the perspective of the dollar cycle. Taking nearly 500 years as an example, Dario revealed the life cycle of the alternation of different empires. It is never easy for any second power to replace the first power. Currency, politics, military, finance and so on are the core elements of change. Dario pointed out that the United States is still the most powerful empire, it is in a relative decline, Chinas power is rising rapidly, no other power can match it.
More financial institutions may join the ranks of layoffs
According to Reuters, at the end of June, a report released by Johnson associates Inc., a compensation consulting firm, showed that Wall Street could cut bonuses by 20% to 15% this year and cut jobs sharply.
Layoffs are likely to become more common as many companies fail to meet their business and financial targets for 2020 to support more home-based workers, the report said. At the same time, this years bonus and salary of employees will be subject to strict review, including the salary of CEO of listed companies and its proportion to the salary of ordinary employees.
Up to now, the financial industry has not seen significant layoffs, but production enterprises and retail industry have already seen large-scale layoffs. For example, at the end of June, Mercedes Benz announced another 10000 layoffs by the end of 2025, its old rival BMW announced 6000 layoffs, and Audi announced 9500 layoffs.
In addition, Zara closed 1200 stores, Starbucks closed about 400 stores permanently, and Weimi declared bankruptcy. It is obvious that the epidemic has caused great impact on many enterprises.