The CAIA Boston Career Management panel, held last week on March 25th, was sold out -- standing room only, with close to 80 people there for a lively and frank discussion! While attendance at our events has historically been strong, I was a bit nervous that our migration from "free to fee" would dampen enthusiasm and attendance. Happily, I could not have been more wrong.

First, many thanks to our expert panel. Lynn Tidd from Russell Reynolds, Lisa Baird from Spencer Stuart, and Beth Komachi from Charles Chase Group. Not only were these panelists deeply involved in alts space and leaders within their respective firms, they could speak credibly across asset classes and functional area. As a bonus, they also jump between their New York and Boston offices, so they were able to touch upon the Boston-NYC dynamic.

I'll try to summarize their comments on key topics:

Major Trends: What's Hot, What's Not
What's Hot: Hedge funds are hiring: traders are in high demand. Analysts, described as "tween" (not too junior, not too senior, i.e. those on the cusp of becoming PM's). Also, Investor Relations is a growing area. Think of IR people as having a firm grounding in the technical, but would do much of the client interface, in terms of finals presentations (for institutions), portfolio reviews, and client conferences. Salespeople are in high demand on the institutional side, but those who have some experience and technical understanding of the hedge fund process. Consultant relations are always in high demand.

Be aware that firms appear more interested in people who are currently employed (tough to hear, they all admitted).

What's Not: private equity seems dormant; real estate seems dormant for now.

Dynamic between Traditional Shops and Alternatives
In institutional space, the alternative shops do indeed value the skill sets of Traditional functions: IR, sales, consultant relations, some back-office and operations. On the analyst/PM side, be aware that long-term veterans of long-only space will have some challenges linking their experience to long-short.

The New York Boston Dynamic
The New York recovery is well ahead of the Boston scene, in terms of hedge funds. Boston-based professionals will need to think hard about whether to broaden their search and whether they'd be willing to make the geographic leap, because there is opportunity. There was anecdotal evidence of firms willing to work with professionals who were commuting back and forth.

Compensation trends
Advice from the panel: Be forthcoming. But talk about "the last three years --- 2007, 2008, and 2009". Hiring firms get the fact that 2008 and 2009 were brutal in terms of bonus payouts, but they want a sense of where you were before the falloff. But be honest.

Compensation, generally, among those hiring, is on the mend and encouraging. There have been stories of where the supply/demand equation (out of whack for the last 12 months) is starting to get more in balance for those with much-needed skills (IR, trading, good analysts, etc.).

The TARP effects have largely been worked through the system and are now a footnote in history, in terms of compensation being a major factor.

Hints and Tips
Broaden your network beyond the obvious:

• Large law firms (who help structure funds, deals, etc.)
• Prime brokers are key. If they know you and like you, this is golden. And they are a rich source of referrals for clients and executive. search firms.

Resume

• Keep it current (even if you're not looking). Be ready to send it out in a moment's notice.
• Not too short, not too long. Two pages seemed good.
• Be prepared to explain gaps. Gaps in 2009 will be easier to explain than gaps in 2006, for example.

References

• References are key. Have your three ready to go, but make sure the three are really people you want advocating for you.
• Hiring firms and exec. search firms are not stupid --- they know that generally, the references you provide will say nice things about you, but their line of questioning is designed to get at issues that may not be so obvious. They are trying to tease out possible flaws/defects, but in roundabout ways.

Working with Search Firms

• Yes, get them your resume. But, do not expect a phone call back. If there's a fit, they will contact you. Don't take it personally if you get no response from them.
• Always take a call from a recruiter. They may not have something for you, but you can still be of service to them, and this helps build your network. Give your insight about the industry, things you see, people you know, and this scores points with the recruiter.
• Understand the difference between "retainer" and "contingency". Contingency searches have a different flavor to them, as the recruiter only gets paid if they fill the position, so they may try to sell you more, even if it's not a great fit. (There are other differences, as well, but this seemed to be the main caveat).

LinkedIn

• www.linkedin.com is by far, the main social networking tool used by recruiting firms. There really is no other.
• Build your profile if you haven't. Give special thought to key words relevant to your background (hedge funds, trading, long-short, investor relations, etc.)
• Note: CAIA Boston is the most active and largest of the CAIA Chapters who have formed LinkedIn groups. Consider joining, if you haven't already.

The CAIA Designation
There was a general agreement that the CAIA designation is still early in its gaining a foothold. It can't be characterized as a "must have" at this phase, especially on the trader/analyst/PM side. However, it can be a differentiator on the IR, consultant relations, sales, marketing, product management side. Also, areas where it has more application: anyone involved in multiple asset class strategies, the "solutions" products that many firms are launching, fund-of-funds, and any functional area where a working knowledge and comfort with alternatives is required. Even on the institutional client side, i.e., buyers of hedge funds such as endowments, pensions, family office, etc.

Again, many thanks to the panel, and to the attendees who asked great questions and were fully engaged. The hour flew by.

Peter Chiappinelli, CFA, CAIA
President of CAIA Boston Chapter