Hedge funds face shortage of managerial talent

Contrary to popular opinion, not just anyone can run a hedge fund. That fact is presenting some problems for the industry. Big funds, especially, would like to hire managers with a track record, but they are few and far between these days. Talented managers often want to set up their own shop. Coupled with the fact that good managers command extraordinary salaries, hiring is getting to be a huge challenge. Automation is really only seen as a niche solution. We're likely to see some consolidation, though that might not really lessen demand for managers. The bottom line is that it is a great time to be a hedge fund manager--if you can stay ahead of your benchmarks anyway. 

For more on this:
- Here's a Financial News Online article  
- More hedge fund news