Selecting the right candidate for a specific role is challenging for any business, and that's especially the case in an industry as volatile as how finance can be.
Senior management at one investment company, however, knows exactly what criteria they have in mind when it comes to selecting future hedge fund managers.
"We focus on specialist managers in London and New York and we're looking for the younger, hungrier hedge fund managers," Erik Serrano Berntsen, CEO and co-founder at Stable Asset Management, told CNBC last week.
"We think the more established names perhaps give you a feeling of safety. But why should you be investing with people who have already been successful, are probably quite rich and are probably wanting to do other more interesting things with their life?"
The CEO said investors should consider the longevity of individuals managers. For instance, what is a manager's incentive to perform? Is there a legacy program in place for other managers to take over the reins of a project?