Investing
Hedge Funds Millennium, Brevan Howard Move to Fine New Hires That Back Out
- Clause would penalize traders who back out of job contracts
- Multi-strategy hedge funds are fighting for staff as they grow
The offices of Brevan Howard Asset Management LP, in London.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
Millennium Management and Brevan Howard Asset Management want to penalize money managers who agree to join the firms but later change their minds, in an unusual step to protect themselves from the competition for talent in the hedge fund industry.
The two firms are asking new hires to agree to terms in their employment contract that can force them to pay damages if they do not start work as planned, according to people with knowledge of the matter. Conversely, the trader would get paid if the hedge funds decide to pull the job offer, the people said asking not to be identified because the information is private.