eFinancialCareers

Hedge fund inflows have been tipped to increase fivefold in the Middle East, and firms are scrabbling to ship Western expertise out to the region as well as find talent on the ground.

Gilles Rollet, chief executive officer of fund manager Mirabaud (Middle East), thinks the hot air surrounding hedge funds in the region will turn into substance, and there will be five times as much investment in regionally based funds by 2010.

“Investors from outside the Gulf region are looking for investment vehicles with healthy returns that are based in stable environments. Structured products based in the Gulf, particularly hedge funds, are the perfect example,” he says.

Bahrain is currently leading the way, with 57 funds worth around $2.6bn, but Dubai has created a ‘Hedge Fund Code’, which it hopes will encourage inward investment.

Peter O’Connell, director of recruiters Cutting Hedge, reckons there’s been an influx of new roles for senior portfolio managers, analysts, sales and compliance specialists.

There’s a demand for talent locally, but the Gulf is increasingly being viewed as a good move for Westerners, he says: “We are most definitely seeing a huge increase in demand from candidates in both the UK and US actively looking to secure opportunities within the region – having identified strong market activity and opportunities for the future.”

Notable players in the Gulf region include Man Investments, Evolence Capital, Ajeej Capital and Rasmala Investments. And international investment banks are offering over-the-counter products that mimic short positions.

What’s more, hedge funds are increasingly marketing their products to the Middle East. GLG has just lost Soraya Chaberek, who was responsible for marketing its offerings within the Gulf. This is another blow for the hedge fund, which is currently witnessing an exodus of talent, as the region made up around 20% of the firm's fund inflows.

O’Connell reckons salaries in the region are competitive with Western markets in order to sway talent across to a relatively underdeveloped market.

Recruiters tell us pay for money managers has shot up in the last year or so to around $350k-$450k, plus bonus.