The beneficiaries of the talent migration from global Wall Street banks to smaller firms and hedge funds couldn’t be happier about the Volcker Rule.”Hedge funds have been significant beneficiaries of the Volcker rule,” Tom Hill, CEO of alternative-investment firm Blackstone Group’s $36 billion hedge fund business, told Institutional Investor.
“The brain drain from the banks has accelerated dramatically.”
Hill’s hedge fund seeding unit has seeded eight managers recently, including:
- George (Beau) Taylor, former head of commodities trading at Credit Suisse Group, and Nick Taylor, who had been running an Asian event-driven fund for Citadel.
- Howard Shainker, a former analyst from Third Point, and Akiva Kat, a former managing director at Brahman Capital, who founded Bow Street Capital.
The Volcker Rule might be over-hyped (many banks shut down some prop trading units but still plan to find ways to make similar investments), but there are still tons of bankers leaving Wall Street for hedge funds, PE firms, and the like.