Investment Banks' Superstar Proprietary Traders: Where Are They Now?

hedge fund

There’s been an exodus of prop traders out of banks ever since Dodd Frank started to take effect last summer.

What’s great is that it’s brought superstar traders into the limelight, and given them an opportunity to stand on their own.

Since Dodd Frank, banks have had to curb proprietary trading operations drastically to comply with the Volcker rule. Banks also can’t afford to give them huge chunks of their balance sheets anymore, diminishing their chances for profit.

Where are they now?

Pierre-Henri Flamand

Used to work at: Goldman Sachs

Known for: He was a top prop trader at Goldman's internal hedge fund. At the age of 34, he was one of the youngest to obtain the status of partner at the bank. He reportedly earned £100 million in 2007.

Left: 2010

New plans: His hedge fund called Edoma has already raised £2 billion.

Source: Telegraph

Source: FinancialNews

Morgan Sze

Used to work at: Goldman Sachs

Known for: He was the Hong Kong-based head of Goldman Sachs Principal Strategies Group. He also headed the prop trading operation for Goldman after Flamand's departure.

Left: Dec. 2010

New plans: He founded a Hong Kong-based hedge fund called Azentus Capital. He reportedly raised $1 billion for his start-up.

Source: Telegraph

Source: Bloomberg

Source: HedgeTracker

Source: eFinancialNews

Ali Hedayat

Used to work at: Goldman Sachs

Known for: Hedayat was named a managing director in 2006. He was part of Goldman Sachs Principal Strategies, serving as the co-head in the Americas of the bank's largest internal hedge fund.

Left: April 2010

New plans: He works for Edoma Capital, founded by former Goldman Sachs prop. trading chief Flamand. In 2011, he made Financial News' first 40 Under 40 Rising Stars of Hedge Funds list.

Source: DealBook

Source: eFinancialNews

Daniele Benatoff

Used to work at: Goldman Sachs

Known for: Proprietary trader for Goldman's principal strategies desk.

Left: Jan. 2011

New plans: Benatoff launched a hedge fund called Benros Capital Partners in London.

Source: Bloomberg

Source: HedgeTracker

Used to work fat: Goldman Sachs

Known for: He was a managing director and the head of Goldman Sachs Principal Strategies Americas equities/credit investment.

Left: 2010

New plans: Howard and his team of 9 joined KKR in 2011 as the head of equity strategies group of the private equity firm.

Source: KKR

Peter Muller

Used to work at: Morgan Stanley

Known for: He founded Morgan Stanley's Process Driving Trading group, or PDT, that uses algorithm programs to bet on the bank's money on pricing discrepancies in global markets.

Left: Jan. 2011

New plans: He expected to launch a new hedge fund at the end of 2012, seeded by Morgan Stanley.

Source: Telegraph

Source: Bloomberg

Fabrizio Gallo

Used to work at: Morgan Stanley

Known for: He served as the head of global head of equities and proprietary trading for Morgan Stanley.

Left: April 2009

New plans: After leaving Morgan Stanley he joined London-based hedge fund Brevan Howard Asset Management. After his stint with Brevan Howard, he was hired by Bank of America Merrill Lynch as the co-head of the bank's equities unit.

Source: Bloomberg

Todd Edgar

Used to work at: Barclays

Known for: Edgar was named Trader Monthly's 'Commodities Trader of the Year' in 2007 when he was a managing director at JPMorgan. While at JPMorgan he reportedly earned the firm $100 million single-handedly. He and members of his team were poached by Barclays in 2009. Barclays paid $50 million to nab the team and gave them a reported 15% share of their profits.

Left: Aug. 2011

New plans: He is reportedly planning on launching a new hedge fund.

Source: London Evening Standard

Kay Haigh

Used to work at: Deutsche Bank

Known for: He helped build Deutsche's emerging markets trading business.

Left: 2011

New plans: He left with seven others to launch a hedge fund called Avantium Investment Management.

Source: Telegraph

Scott Danford

Used to work for: Deutsche Bank

Known for: Danford was considered a star credit trader.

Left: May 2011

New plans: Danford joined New York and London-based hedge fund Arrowgrass Capital Partners. The firm runs a managed account for Deutsche Bank.

Charlie Chan (Charlie Chan Wai Kheong)

Used to work for: Credit Suisse

Known for: Chan, a 25-year veteran at Credit Suisse, headed the bank's foreign exchange strategic trading unit. While at Credit Suisse, he was a top-rated trader in Asia as well as a pioneer for the bank's prop trading unit in Asia.

Left: Nov. 2010

New plans: His hedge fund, Charlie Chan Capital Partners, will reportedly begin trading this month.

Source: HedgeFundIntelligence

Source: eFinancialNews

Sutesh Sharma

Used to work at: Citi

Known for: Sharma and Citi's CEO Vikram Pandit left Morgan Stanley to launch the hedge fund, Old Lane, with $4 billion, making it the second largest hedge fund at the time. Citi later bought Old Lane.

New plans: Moved to the Citi-seeded hedge fund, Citi Capital Advisors.

Source: Telegraph

Source: Bloomberg

Matthew Carpenter

Used to work at: Citigroup

Known for: Carpenter led the proprietary equity trading group at Citigroup that oversaw $1 billion in assets. He was previoulsy a managing director for US equity research division and a partner at Citigroup private equity.

Left: Feb. 2010

New plans: Carpenter joined Louis Bacon's Moore Capital Management in February 2010 as the head of equity trading.

Source: HedgeTracker

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