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A $40 billion hedge fund identifies its rising stars using 3 simple factors everyone should know
(Two Sigma)
Two Sigma, a $40 billion hedge fund that uses advanced technologies to find investment opportunities, has grown at a rapid rate over the past few years.
The number of employees at the firm has grown 400% over the past seven years, and it now has 1,000 staff members in offices in New York, Hong Kong, Houston, London, and Tokyo.
It has generated $13.1 billion in returns since its inception in 2002, according to LCH Investments, a London-based fund of funds, making it the 20th-most successful fund of all time. Only one fund, Brevan Howard, has generated more in a shorter time period.
Evan Anger is a senior vice president in recruiting at the firm, and at a breakfast event organized by the recruitment firm Options Group, he explained how the firm identified the next generation of leaders within the firm.
He said it's all about three things:
Engagement. Anger and his colleagues in HR look at how engaged an employee is in what they're doing and life at the company, as well as their level of engagement with the company culture.
Contribution versus scope of the role. The firm also tracks how actively employees engage with topics outside their day-to-day role. That helps provide insight into whether someone could one day step up or take a bigger role in a different team.
Career velocity. How fast is someone rising through the ranks? Are they being promoted ahead of schedule?
It sounds pretty simple, but it's useful to know.
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