Hedge funds in Asia, whose returns have been under strain in the past six months, are poised to step up hiring, according to recruitment firm Matthew Hoyle International. This is especially likely since hedge funds are still doing relatively well compared to the investment banking sector. Investment bankers were likely to be attracted by greater rewards and job security that hedge funds could provide amid industry turmoil, the company said. Noting that its internal data showed a 48 per cent year-on-year rise in the number of executives in Asia placed from January to May this year in hedge funds from investment banks, the recruitment firm said that the credit crisis had slowed proprietary trading, and increased the number of banking staff seeking outside opportunities. Another draw was that hedge funds paid a bonus based on performance, and not on a discretionary basis, the firm said. 'Smart hedge fund managers see it as a chance to pick up very talented traders, analysts and portfolio managers from internal prop desks - and often for salary packages far less than a year ago,' said Matthew Hoyle, co-founder of the financial recruitment firm. Despite Asian hedge funds having been the world's worst performers this year, Mr Hoyle said that new ones were still being set up in Hong Kong and Singapore. After five years of double digit percentage climbs, the Eurekahedge index tracking Asian funds fell by 5.63 per cent in the first six months of this year. This compared with declines of 0.45 per cent in North America and 2.37 per cent in Europe. Mr Hoyle said that two years ago, hedge funds, looking to hire a candidate with about five years' experience in investment banking, would expect to pay an annual salary of at least US$1 million. This had fallen to around US$250,000, he said.