So what's in store for hedge funds this year? The overall environment, regarding fund raising and the markets, looks okay. But there could well be some internal struggles. For one thing, talent will be hard to come by.

According to Heidrick & Struggles, "the availability of senior top talent is decreasing as hedge fund investment professionals re-surface at other hedge funds, proprietary trading banks, asset management firms, and a host of other destinations including endowments, foundations, and family offices." Some talent is departing for the SEC, where "the creation of a new Division of Risk, Strategy, and Financial Innovation are leading to new hires." Compensation is this rising. And front office professionals "can expect to see compensation guarantees return, although this will be coupled with an increase in clawbacks and deferrals." 

For more:
- here's the outlook

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