A shortage of talented staff is forcing hedge fund management firms to give away more of their profits. Hedge fund managers seem assured of high rewards for the foreseeable future, according to Sir John Gieve, a deputy-governor of the Bank of England, who said last week: "The fundamental drivers behind hedge fund growth are there.

The splitting and repackaging of risk, together with internationalisation, has created opportunities. A high value has been placed on those who have the expertise to make the most of this process."