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Hedge funds ramp up hiring for natural gas traders amid Europe risk

Firms are offering higher pay, with reported hedge-fund cut potentially exceeding 20% of profits versus about 15% at energy merchants.

Reported · Written up by our desk · Hedge Funds

Hedge funds are stepping up their search for natural gas traders as Europe moves toward another potentially volatile winter, according to Hedgeweek, citing tighter supplies and geopolitical risks as factors boosting activity in energy-focused strategies.

Competition for experienced traders has intensified, with some leading hedge funds prepared to offer materially higher earnings potential than traditional energy companies and trading houses, the outlet reports.

Balyasny Asset Management is among the firms expanding its natural gas capabilities, including hiring Sayan Palchowdhury in New York from DRW, where he traded natural gas after starting his career at Goldman Sachs.

Hedgeweek also notes that compensation differentials are a key driver of the talent migration, with recruiters pointing to typical profit splits of about 15% for traders at energy merchants and 10% at utilities, compared with potential earnings of more than 20% at hedge funds. It adds that DRW has seen multiple departures from its gas trading team, with Palchowdhury’s exit adding to the turnover, and mentions additional recent moves including traders moving between firms such as Millennium and Castletown Commodities.

Latest closeNat gas $3.008 ▲3.6%

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