The Success and Challenges of Working at BlueCrest
If you’re in the finance industry and looking to join a hedge fund with a track record of strong performance, there are a few notable options to consider. One such fund is the Melqart Opportunities Fund, which boasted an impressive 45.1% return last year according to Bloomberg. Another standout performer is Citadel, which has consistently delivered annual returns of 19%. Then there’s BlueCrest, which has seen remarkable gains of 7,858% since 2016 and achieved a 73% return last year.
These exceptional performances have attracted top talent to BlueCrest, including former Barclays rates trading star, Ankur Aneja, who joined the firm as a partner. BlueCrest’s founder, Mike Platt, has amassed a fortune estimated at $12.8 billion, thanks to the fund’s success.
A Shift from Hedge Fund to Family Office
It’s worth noting that BlueCrest is no longer classified as a hedge fund, as Platt made the decision to return approximately $7 billion to clients in late 2015, transforming the firm into a family office. This transition has brought certain advantages, such as allowing BlueCrest to allocate a larger share of its profits to employees, with portfolio managers receiving a generous 30% cut of the profits. Additionally, the firm’s internal governance is described as tight, with accountability not being mediated through clients, which has contributed to its continued success.
However, working at BlueCrest under the leadership of a billionaire like Platt, who reportedly expects his ideal employee to start making money as early as 7 am on a Sunday, comes with its challenges. Insiders reveal that Platt can be demanding and uncompromising, with one former BlueCrest portfolio manager describing the setup as having essentially one client—Mike. This level of direct involvement from Platt means that he has the authority to change course and set new directives, which can be challenging for employees.
Rewards and Recruitment at BlueCrest
Despite the demanding environment, the financial rewards at BlueCrest are substantial, with partners earning an average of £959k ($1.3m) annually, while other employees take home around £534k. Platt has been actively recruiting new talent, recently adding five new partners to the team, including individuals with expertise in macro trading and rates markets.
Platt’s own background as a former rates trader at JPMorgan has influenced BlueCrest’s focus on rates and emerging markets within its investment strategy. While there have been attempts to diversify into commodities, the firm has faced challenges in retaining talent in this area.
Continued Success and Growth
Despite its shift to a family office structure, BlueCrest has maintained a strong position in the market, leveraging its assets effectively to achieve significant returns. Platt’s bold investment decisions and expertise in rates trading have been key drivers of the firm’s success, propelling him to the status of one of the highest-earning individuals in finance.
As the finance industry reacts to global events and political developments, hedge funds like BlueCrest remain agile in their investment strategies. The ability to anticipate and interpret market movements, such as the impact of political decisions on commodities and debt markets, continues to be a valuable skill set within the industry.
Conclusion
In conclusion, BlueCrest stands out as a prominent player in the finance industry, with a history of impressive returns and a reputation for attracting top talent. While the demanding nature of working for a billionaire like Mike Platt may not be suited to everyone, the financial rewards and opportunities for professional growth at BlueCrest are undeniable.
For those considering a career in finance and seeking a challenging yet rewarding environment, BlueCrest offers a unique opportunity to be part of a successful and dynamic team.
For more information on BlueCrest and its founder, Mike Platt, visit here.
