Key Takeaways
- • BlueCove Asset Management, a newly launched "scientific" fixed income hedge fund founded by Hugh Willis and Alex Khein (both formerly of BlueBay), has hired nine people from BlackRock's systematic investing team in London, including five managing directors, signaling aggressive expansion in a weak hiring environment.
- • BlueCove has recruited senior talent from Goldman Sachs and JPMorgan, including Gareth Williams (former Goldman strat), Zhe Wang (former Goldman systematic trading strategies), and Ana Jovanovic (former JPMorgan Athena risk system developer), with the firm reportedly offering equity stakes to attract experienced personnel.
- • The firm's headcount has grown to approximately 29 employees, with founder Willis indicating plans to recruit five to ten additional staff members before a planned launch in the second half of 2019, occurring amid significant hedge fund industry headwinds including 2018's worst performance since 2011.
- • James Turner joined as head of systems engineering, bringing extensive front-office development experience across London financial institutions and a PhD in computing, reflecting BlueCove's emphasis on technological infrastructure in systematic fixed income investing.
- • BlueCove's hiring activity contrasts sharply with broader 2019 hedge fund sector weakness, including Balyasny Asset Management's elimination of 125 positions and global workforce reductions at AQR Capital Management.
Summary
BlueCove Asset Management has emerged as an outlier in the struggling hedge fund labor market, aggressively recruiting senior talent while competitors retrench. The London-based fixed income hedge fund, founded by Hugh Willis and Alex Khein, both formerly executives at BlueBay, has built a team of approximately 29 people and continues active hiring despite challenging industry conditions that marked 2018 as the worst year for hedge fund performance since 2011.
The firm's recruitment strategy centers on securing experienced technologists and systematic trading experts. Most notably, BlueCove hired nine people from BlackRock's systematic investing team in London in November 2018, including five managing directors. Subsequent recruits have included Gareth Williams, a former strategist at Goldman Sachs; Zhe Wang, who worked on Goldman's systematic trading strategies team; and Ana Jovanovic, a developer from JPMorgan who contributed to the bank's Athena risk management and pricing system. While Wang and Jovanovic represent early-career hires with fewer than three years of experience at their respective institutions, BlueCove has also attracted more seasoned talent, including James Turner, who became head of systems engineering after holding various front-office development roles across the City and earning a PhD in computing from Warwick University in 2003.
To compete for talent in a crowded market, Willis has leveraged equity ownership in the new firm as a recruitment incentive, according to statements made to the Financial Times. The firm is targeting a launch window in the second half of 2019, with plans to expand its workforce by an additional five to ten employees before that date. BlueCove's aggressive hiring trajectory stands in sharp contrast to sector-wide retrenchment, evidenced by Balyasny Asset Management's elimination of 125 positions and AQR Capital Management's global workforce cuts announced in early 2019. Industry observers have noted BlueCove's attractiveness to prospective employees, suggesting the fund's focus on systematic fixed income strategies and commitment to technological infrastructure positions it favorably within the alternative investment landscape during a period of significant industry consolidation.
The firm's recruitment strategy centers on securing experienced technologists and systematic trading experts. Most notably, BlueCove hired nine people from BlackRock's systematic investing team in London in November 2018, including five managing directors. Subsequent recruits have included Gareth Williams, a former strategist at Goldman Sachs; Zhe Wang, who worked on Goldman's systematic trading strategies team; and Ana Jovanovic, a developer from JPMorgan who contributed to the bank's Athena risk management and pricing system. While Wang and Jovanovic represent early-career hires with fewer than three years of experience at their respective institutions, BlueCove has also attracted more seasoned talent, including James Turner, who became head of systems engineering after holding various front-office development roles across the City and earning a PhD in computing from Warwick University in 2003.
To compete for talent in a crowded market, Willis has leveraged equity ownership in the new firm as a recruitment incentive, according to statements made to the Financial Times. The firm is targeting a launch window in the second half of 2019, with plans to expand its workforce by an additional five to ten employees before that date. BlueCove's aggressive hiring trajectory stands in sharp contrast to sector-wide retrenchment, evidenced by Balyasny Asset Management's elimination of 125 positions and AQR Capital Management's global workforce cuts announced in early 2019. Industry observers have noted BlueCove's attractiveness to prospective employees, suggesting the fund's focus on systematic fixed income strategies and commitment to technological infrastructure positions it favorably within the alternative investment landscape during a period of significant industry consolidation.
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