Goldman Sachs’ biggest prop trading team, Principal Strategies, disbanded recently and left at least a dozen traders looking outside the firm for new jobs, maybe at Mark Lasry’s Avenue Capital, says Bloomberg.Those who won’t leave Goldman will find a job in another groups within the firm, most likely on the asset management arm, for reasons detailed here.
Those who do plan on leaving seem to be the traders working under Bob Howard, which are about 12 traders who are being courted or courting Perella Weinberg, KKR, and most recently, Avenue Capital – the first hedge fund to make it on the list (PW and KKR are an investment bank and a LBO firm).
Avenue Capital Group, the hedge fund-firm run by Marc Lasry, is in talks to hire members of Goldman Sachs Group Inc.’s proprietary-trading business in the U.S., according to two people briefed on the discussions.
Bob Howard and his team might prefer to be at a hedge fund. A top prop trader’s from a bulge bracket bank to a hedge fund is typical, especially from Goldman, where Pierre Henri-Flamand, David Tepper, and Morgan Sze are among the many examples of success stories.
Read more from when it was first announced Goldman was disbanding their prop trading unit >>