Hedge Funds Feast On Talent As Prop. Desks Whither

Aug 9 2010 | 11:21am ET

Not only did the recently-passed Dodd-Frank financial regulation reform law leave hedge funds relatively unscathed, it is serving as a major recruitment tool for the industry.

The law requires banks to end their proprietary trading activities within four years, but talented traders on those desks aren’t waiting to flee for the greener, less-regulated pastures of the hedge fund world, Illana Weinstein of executive search firm IDW Group said.

“The amount of incoming flow to us from folks that were very sticky in the past and very talented is very unbelievable in terms of wanting to leave the prop. desk to go to the hedge funds to not have to deal with all of this stuff,” Weinstein, the firm’s CEO, told CNBC. “I think it’s turned hiring from the prop. desks into a buyer’s market for hedge funds.”

Goldman Sachs, Morgan Stanley and Bank of America are among the large firms are considering spin-offs or shut-downs of their prop. desks.

“Hedge funds have their pick of whoever the remaining talented prop. traders are,” Weinstein said.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note