## KEY TAKEAWAYS
- Hedge funds are drawing commodities talent away from global investment banks and commodities trading houses, with George Carroll, head of markets recruitment in EMEA for Selby Jennings, describing a shortage of talent in the sector.
- Arthur Goossens, co-head of commodities trading at BNP, left for Schonfeld in February, according to Bloomberg, as an example of senior banking departures.
- Vitol paid its partners an average of $17.6m for 2024, a pay level that makes it difficult for hedge funds to poach senior traders from the trading houses.
- Hedge funds screen candidates primarily on demonstrated risk management, drawdown experience and alpha generation, while banks offer earlier responsibility, with traders at about four years managing small books.
- Commodities demand is elevated by instability in the Middle East and its effect on global shipping and supply chains, particularly oil.
## DETAILED SUMMARY
Hedge funds are aggressively recruiting commodities traders, pulling senior talent from the banks that have long dominated the sector. According to George Carroll, head of markets recruitment in EMEA for Selby Jennings, the funds are the main source of talent gaps across the industry, as they hire the best people from leading trading shops worldwide. Commodities have become a focus for hedge funds amid instability in the Middle East and its impact on global shipping and supply chains, especially oil. Carroll said everyone now wants to grow in commodities, creating a shortage of talent.
The banks bear the heaviest losses. Carroll cited global investment banks losing EMEA and global business heads to hedge funds. Arthur Goossens, BNP's co-head of commodities trading, who left for Schonfeld in February, as Bloomberg reported, is one example. Commodities trading houses are also losing staff to hedge funds, though Carroll noted that they tend to draw from smaller rivals to fill their own pipelines.
The highest tiers of trading houses are harder for hedge funds to penetrate. Vitol paid its partners an average of $17.6m for their work in 2024, and because hedge funds primarily compete on pay, matching those packages is difficult.
Carroll outlined the criteria hedge funds apply to candidates. Risk management experience is central, along with exposure to drawdowns and a track record of generating significant alpha. He said candidates often fail to meet these standards. Banks remain the best place to build experience, offering substantial responsibility from three or four years in, whereas a hedge fund typically does not give comparable responsibility at that stage, even though hedge funds now hire their own interns and graduates.
