Tuesday, 21 October 2014
Last updated 2 hours ago
Apr 24 2009 | 1:05pm ET
Morgan Stanley may transform its biggest proprietary trading desk into a hedge fund as a way to sidestep new government restrictions on pay and hiring.
The Wall Street giant may either spin out its quantitative process-driven trading group into a separate hedge fund firm, or could open it to outside investors as an internal hedge fund, The Wall Street Journal reports. The newspaper noted that no decision is imminent and that the group could remain with Morgan Stanley.
But PDT’s top traders are reportedly concerned about pay restrictions imposed by the federal government on firms receiving bailout money, as well as those on hiring foreign workers. Any move to spin the group off could be an effort by Morgan Stanley to hold onto talent that might otherwise leave to start their own hedge funds, or to join existing hedge fund shops.
Any plan to turn PDT into a separate hedge fund firm would likely see Morgan Stanley keep its current investment and a substantial ownership stake in the new firm. PDT has had only one down years since it was launched in 1993, and has earned Morgan Stanley some $6.5 billion in pretax income over that span.
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…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...