Hedge Funds

Non-compete ban is ‘game changer’ for hedge funds

Recruiters say the Federal Trade Commission’s plan to stop lock-ins could have a major impact on hedge fund talent

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The FTC’s move in the US is ‘bad news for larger hedge funds with an army of lawyers’ Photo: Getty Images

The Federal Trade Commission’s ban on non-competes will be a “game changer” for hedge funds, recruiters say, as the sector prepares for greater competition.

The move will allow portfolio managers and quantitative researchers to switch firms more easily, but is a blow to large hedge funds paying law firms big bucks to enforce strict non-compete clauses, according to headhunters.

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