In an unusual twist in the multi-strategy hedge fund hiring battle, portfolio managers coming off significant losses are increasingly in demand among the industry’s biggest players, including Citadel, Millennium Management, Point72 and Balyasny Asset Management, according to a report by Bloomberg.

Traditionally, traders who suffered heavy drawdowns were swiftly shown the door. But with talent in short supply, veteran managers with proven track records – even after recent setbacks – are being offered second chances at rival firms, often with multimillion-dollar signing bonuses and guarantees.

High-profile moves include Winston Cheong leaving Millennium for Schonfeld after an $80m loss, Paul Netter departing Millennium for Point72 following a brief “retirement,” and David Brodsky switching from Citadel to Balyasny despite a $60m drawdown. Rob Banham left Point72 for Citadel – only to incur further losses at his new firm.

Recruiters and hedge fund executives say these “wounded lions” are viewed as temporarily off their game but battle-tested, making them attractive hires at a discount.

While firms including Citadel, Millennium and Point72 are also investing heavily in trader training academies to build their own bench strength, the lure of proven — if recently underperforming — managers remains strong.