The general manager of quantitative private placement in southern China told China Securities News: this year is a big year of quantification, and many quantitative organizations are recruiting people on a large scale. We have interviewed at least hundreds of candidates this year, which are pushed by headhunters. At present, we have cooperation with the top quantitative headhunters in the mainland and Hong Kong. Every time they successfully recommend a person, we have to pay 25% of the annual salary of that person as the headhunting fee.
In the past year, we have recruited a lot of people. Frankly speaking, most of the financial headhunters at home and abroad know me. There are eight headhunters overseas who work for us and keep recruiting for us. The investment director of a quantitative private placement in Shanghai told China Securities News: we have offered six offers with a base salary of $500000, but only one has succeeded so far.
High headhunting fee
China Securities News reporter learned from a private headhunter that 25% of a candidates fixed annual salary is the industry average. According to this level of calculation, if all the above-mentioned quantitative private placement in Shanghai is successfully recruited, the headhunting fee will also cost millions of yuan a year.
The fierce competition makes the investment in human resources of quantitative private placement is very high. According to the investment director, quantitative private placement has the largest investment in human resources. From the companys input cost, the labor cost accounts for 50% of the total cost. In addition, the calculation power and data account for 30% and 20% of the total cost respectively.
The investment director further said that they prefer professionals to all rounders. Quantitative investment requires too much talents, and all disciplines, including mathematics, statistics, physics, finance and computer, need to be recruited. The financial industry is short of talents in these aspects, and it is often necessary to rob people from other industries. Our goal is to create a standardized hedge fund like the overseas market. The personnel size, department setting, organizational structure, risk control setting, etc., should be set in accordance with the high standards of overseas hedge funds, emphasizing the professionalism of core positions and special personnel to do professional work, he said
Although talents are scarce, many institutions hold the attitude of prefer shortage to overuse. According to a quantitative private placement personage, the alpha strategy recruits employed by the company in recent year have a elimination rate of up to 40%. If the strategy fails to make profits within 12 months, it will be eliminated.
All round competition
The competition of quantitative private placement is becoming increasingly fierce, from the competition of data and strategy in the early stage to the competition of computing power, and now to the all-round competition of talents and operation.
A quantitative private equity partner said: at present, domestic quantitative private placement does not have advantages in terms of brand compared with foreign established top-notch quantitative investment institutions. Some excellent talents still prefer to choose those foreign top institutions. In addition, different regions in China have different attractiveness for talents, so excellent candidates are very rare.
In order to retain talents, various institutions have also used 18 kinds of martial arts. We have interviewed a lot of candidates this year, but we are still cautious in finalizing it because we hope to design a good career for every employee, let them grow, and help them achieve financial freedom as much as possible, said the former quantitative private partner
The reporter of China Securities News learned that the most common incentive mechanism for quantitative investment is based on the contribution of factors or strategies developed by individuals; in addition, some organizations take out the most profitable internal products of the company with limited strategic capacity as rewards for excellent employees and give them the qualification to follow in investment. Some strategies can make considerable profits, even doubling in a year Some organizations will implement equity incentive on a regular basis, and take out the companys equity as a must kill skill to retain talents.
Source: Ren Hui, editor in charge of China Securities Journal_ NBJ9607