This time it’s David Adams, who’s leaving Morgan Stanly for hedge fund giant Brenan Howard
Mr. Adams ran Morgan Stanley‘s interest-rates trading desk in Sydney, Australia, specializing in trading Australian and New Zealand government bonds. He also traded government bonds issued by governments throughout the Asian-Pacific Region.
Mr. Adams will be taking a position with a fund in Hong Kong under the umbrella of Brevan Howard Asset Management LLP.
Brevan Howard is well known as macro fund, meaning it makes bets on financial assets such as currencies and commodities based on views about broad economic themes such as European debt crisis and the challenges of the U.S. economy. Morgan Stanley and Brevan Howard declined to comment.
Trading of Australian bonds has become a larger focus for investors in recent years, as their relative safety and higher yields have made them attractive in comparison to traditional havens such as U.S. Treasurys. Look at Other Traders Who Quit Wall Street For Hedge Funds
Hedge funds are offering managing director-level traders salaries of about $200,000 to $250,000. Some of the largest hedge funds may pay bonuses of as much as 12 percent of traders’ profits, or an even bigger percentage of their earnings after the firm takes a 2 percent cut.
Unlike the banks, the funds typically pay 50 percent or more of bonuses to their highest earners in cash, according to New York-based compensation consulting firm Johnson Associates Inc. The rest may be locked up in funds the firms manage.
“It’s a buyer’s market” for the hedge funds, Karp said. “People are figuring out how to trade in this new world.”
Silvetz’s departure from Deutsche Bank followed those of Prakash Narayanan and Thomas Curran, who together made more than $1 billion for Germany’s biggest bank in 2009 and 2010, the people with direct knowledge of the situation said. Silvetz, Narayanan and Curran declined to comment.
What is Hedge Fund?
Brian Maggio left Barclays’s credit-trading team in New York in March for Millennium Management LLC, a hedge fund with $15.6 billion invested. In the five years ended in December, the trader made an estimated $375 million for Barclays and Lehman, where he worked until the firm filed for bankruptcy in September 2008, according to two people familiar with the matter. Maggio’s exit followed those of Barclays colleagues Jason Quinn and Peter Agnes, both of whom went to Caxton Associates LP in New York.
Maggio and Quinn declined to comment. Agnes, who didn’t respond to messages left on his mobile phone, was part of a proprietary-trading group dealing in credit markets that wouldn’t be allowed under the Volcker rule and has been shut down, according to a person familiar with the matter.
Barclays is among banks including JPMorgan Chase & Co., Goldman Sachs (GS) Group Inc. and Morgan Stanley that have shut proprietary-trading groups.
Goldman Sachs credit traders Matthew Knopman and Philip Ha left the New York firm earlier this year, with Knopman starting at Anchorage Capital Group LLC this month and Ha going to MKP Capital Management LLC, people familiar with the moves said in March. Rob Jackson joined Cyrus Capital Partners LP from Goldman Sachs in February.
High-yield bond trader Jerry Cudzil departed Morgan Stanley to head U.S. credit trading at TCW Group Inc., which was managing $73.3 billion in fixed-income assets as of March 31. Peter Viles, a spokesman for Los Angeles-based TCW, confirmed the hire.
BlueCrest this month added Deutsche Bank credit trader Stefano Galiani, according to three people familiar with the matter. It brought on Morgan Stanley’s Eugene Gokhvat in April, according to BlueCrest spokesman Ed Orlebar, who said he couldn’t comment about Galiani.
Representatives of Deutsche Bank, Barclays, Goldman Sachs, Morgan Stanley and Bank of America declined to comment.
“Many of the major investment banks just don’t have the capital they used to, and a lot of that is because of the Volcker rule,” Marc Lasry, co-founder of Avenue Capital Group LLC, said May 2 in an interview with Bloomberg TV’s Stephanie Ruhle at the Milken Institute Global Conference. Hedge Funds taking home biggest paychecks
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