Looking back at 2023

Looking back at 2023

Investment

As we reflect on what was a more challenging year in comparison to 2022, it’s clear that the year was not without its share of opportunities. Firms showcased resilience by not only expanding existing verticals but also venturing into entirely new strategies.

Breaking down the year through the lens of our Portfolio Manager placements, we observed notable successes in Volatility (18%), Macro (27%), and Quantitative strategies (35%). Long/Short Equities continued to play a significant role, with eight risk-taking placements, although these were all within Sub-PM capacities. It’s crucial to recognise that these results offer insights into our attainment of the market and should not be considered a comprehensive reflection of the broader universe.

Taking a more comprehensive view by aggregating data from our monthly people moves report, which tracked approximately 250 Portfolio Managers, we observed the following distribution: Macro 25%, Equity L/S 17%, Fixed Income RV 16%, Credit 10%, Volatility 10%, Commodities 6%, Quant Equities 5%, Event Driven 5%, Quant Macro 3%, and FX 3%. From a product perspective, this breakdown aligns with Fixed Income leading at 45%, followed by Equities at 36%, Credit at 10%, Commodities at 6%, and FX at 3%.

It’s essential to note that these statistics pertain to Portfolio Managers who began their roles this year, likely having signed agreements in 2022 when Macro strategies held significant dominance in the market. Therefore, these figures may not fully capture the evolving appetite and trends of the current year.

Non-Investment

Looking back on the year 2023, OCR Alpha’s Non-Investment team celebrated a record-breaking performance with a substantial uptick in hiring compared to 2022. Q2 and Q3 were notably busy, with mandates reaching across the globe and placements in five countries. Examining key metrics, it’s evident that multi-strategy hedge funds dominated, constituting nearly 60% of the hiring mandates in 2023—a notable 10% increase from the previous year. Global Macro-focused funds made up 15% of the mandates, while Credit and Long/Short Equity accounted for the remaining percentage. Treasury was a particularly strong area for us, and the number of successful mandates increased by over 150% compared to 2022 – these mandates was primarily focussed around Portfolio Finance and Repo Trading, which were in high demand throughout the year.

As we navigate the ever-changing landscape of the hedge fund industry, we remain committed to providing insights and support to both our clients and candidates. Please feel free to reach out if you’d like to discuss these market trends further or explore potential opportunities within your team.

DISCLAIMER: This web page provides general market-related information and commentary compiled by OCR. The information contained within this presentation does not constitute nor should it be construed to constitute regulatory or investment advice. This information was written in good faith and the details contained within this document is deemed to be reliable. However, its accuracy and completeness cannot be guaranteed. This information is being furnished on a confidential basis for discussion purposes to a limited number of recipients. It is intended for the sole use of the person or firm to whom it is provided by OCR. Any reproduction or distribution of this information, in whole or in part, or the disclosure of its contents without OCR’s prior written consent is expressly prohibited. Our privacy policy is available here.

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