Goldman Sachs data points to easing hedge fund hiring race as SMA allocations grow

Multi-strategy and multi-manager hedge funds increased headcount by 7% from mid-2025 to mid-2026, a deceleration from prior periods, according to a Goldman Sachs analysis reported by Business Insider. The bank attributes the moderation to the continued build-out of external allocation programs, which allow firms to deploy capital through third-party managers rather than expanding internal teams. Goldman estimates SMA growth over the past year is equivalent to about 800 full-time employees; had that capacity been added through direct hiring, year-over-year headcount growth would have exceeded 10%.

External assets under management in these programs rose to $47 billion from $34 billion over the same twelve-month period. Goldman says Millennium, Schonfeld and Qube are aggressively allocating to outside managers, typically through SMAs, and that Citadel, which has not traditionally focused on external allocations, is beginning to enter the space. The average mandate ticket reached nearly $190 million, up 19% from a year earlier.

The structure also offers a clearer route for portfolio managers to launch their own firms, allowing them to run capital without a lengthy institutional fundraising process. Many founders taking SMA capital previously worked at large multi-strategy platforms. The report indicates that investment personnel will account for 43% of 2026 hedge fund roles, up from 40% in 2024, suggesting hiring budgets remain concentrated on revenue-generating positions even as the broader talent war appears to be cooling.

Note on sourcing: the original article could not be retrieved in full; this summary is based on web search excerpts of the Traders Union piece and its Business Insider attribution.