The Rise of Collaborative French Quant Fund
Multiple quant hedge funds have been rapidly expanding in France in recent years. The largest is London-based Qube Research, known for its opaque culture where traders often do not see their own P&L. On the other hand, a French quant fund named Capital Fund Management (CFM) has been making waves with its unique approach to hiring and company culture.
Growth and Culture at CFM
According to Business Insider, CFM has grown significantly, increasing its workforce from 260 employees in 2020 to 450 today. This growth includes expanding its New York office, indicating a strong presence in the global market. The fund’s president, Philippe Jordan, attributes this success to CFM’s dynamic and sustainable culture, which has resulted in low turnover rates.
Unlike traditional hedge funds, CFM has a collaborative culture that encourages its quants to openly publish their research rather than keeping it as proprietary information. This transparency has made CFM a desirable destination for academic talents, allowing the fund to hire extensively from academia.
Academic Approach to Hiring
Similar to Renaissance Technologies in the US, CFM takes an academic and scientific approach to hiring. With approximately 100 researchers, predominantly PhD physicists, CFM aims to recruit 15 new PhDs every year. Recent hires include Léonard Lehoucq, a PhD astrophysicist from Sorbonne, showcasing the fund’s commitment to academic excellence.
CFM also values graduates from the DEA El Karoui program, a prestigious masters in financial engineering course in Europe. The fund’s diverse pool of talent includes hires from institutions like Durham University in England and the University of Bologna in Italy.
Diverse Technology Hires
When it comes to technology hires, CFM prefers experienced professionals. Recent additions to the team include Sébastien Brasseur, who joined as the head of the prediction platform after holding prominent positions at SocGen and Microsoft. Thomas Linck, the head of platform engineering, brings his expertise from his previous roles at Kayyros.
A Unique Hiring Strategy
CFM stands out for its unconventional hiring strategy, which avoids siloed pods and has a minimal presence of portfolio managers. Despite hiring 76 individuals in the past year, none of them identify as portfolio managers. This approach contrasts with traditional hedge funds, emphasizing CFM’s commitment to a collaborative and research-driven environment.
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