Wednesday, 1 October 2014
Last updated 36 min ago
Nov 4 2013 | 11:46am ET
Predictions that new banking regulations would lead droves of bank traders to launch their own firms have proven unfounded.
Just 418 hedge funds have debuted in 2013, according to Preqin, a far cry from the roughly 750 new firms founded in each of the previous two years. And the reason is a surprising one: Despite tough new rules strictly limiting their ability to trade, banks are paying more to hold on to top talent.
The "increasing competition for staff" has reduced "the financial incentive to set up a new fund," Kinetic's John Griffiths told the Financial Times.
In addition, new regulations are also hurting hedge funds, especially start-ups. Both U.S. and European rules, although especially the latter, have spooked some would-be hedge fund managers, who fear that they won't be able to raise enough capital. Several much-ballyhooed hedge funds founded by top bank traders in recent years have failed.
In addition, the uncertainty surrounding the rules and their implementation have some ambitious traders waiting on the sidelines to see how things pan out, Griffiths said.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...