SellSide Confidential: Hedge Funds Are More Fun
Hedge Funds are reaping the rewards of their superior risk management skills and cultures, where rogue traders are presumable shot on the spot.
Yes, the inflows to Hedgistan have slowed, but they have the pick of the litter as the SellSide, outside of Goldman, implode:
The biggest hedge funds are on a hiring binge, taking advantage of cutbacks at investment banks to recruit star traders, senior executives and whole teams to help them expand.
On Monday Goldman Sachs lost Driss Ben-Brahim, one of its top traders, to GLG Partners, London’s second-biggest hedge fund. This follows high-level recruitment from banks by Citadel, Tudor
“The environment in investment banks is such that they don’t feel as secure where they are,” said Peter Clarke, chief executive of Man Group, the biggest listed hedge fund manager. “It is materially helpful to us.” FT
Citadel and some of the other alternative shops can sift through the wreckage. Goldman employees might be off limits, but everythng else is fair game:
“You can get whomever you want,” said the head of one large London hedge fund.
“Goldman is in good shape but it is the easiest time ever to hire people from Merrill Lynch, Morgan Stanley, even Deutsche. Forget about everything else: at these banks it is just not fun any more.”
No fun, indeed. With capital commitments to SelllSide proprietary traders being reduced, the exodus will continue well into 2009.
Hedge funds hit troubled banks with a hiring binge
FT
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