Goldman Sachs exits all about hedge funds & electronic trading firms
Goldman Sachs might be looking to cut some of its big shots to save on their huge ($400k+) salaries and big bonuses, but that probably won’t be a problem for those leaving.
Senior Goldman people can easily find homes elsewhere. We’ve spotted another two Goldman people leaving the firm in recent weeks (although there’s no indication that they were part of the bank’s cuts).
Raja Harb is one of them. An MD and Goldman’s former co-head of agency mortgage trading in New York, he left the bank after nearly 17 years to join BlueCrest Capital Management, Mike Platt’s heavily-hiring “family office-that-most-certainly-isn’t-a-hedge fund”, in the Big Apple. He’ll be a portfolio manager for the fund.
The other is Calum Paradise. He spent 11 years with Goldman before leaving, and was most recently an executive director in equity financing for the bank. He joined Jane Street, the high-paying and (formerly) anarchistic market maker earlier this week to be a treasury specialist.
Leaving banks for hedge funds is all the rage. We’ve noticed Eisler Capital adding from Goldman, Nomura, and JPMorgan (and that’s just banks), as had BlueCrest itself – from Goldman and UBS, among others. Goldman even lost an entire team of traders to hedge fund Marshall Wace. It’s difficult to estimate, but dozens have left Goldman for hedge funds this year already, by our count.
Paradise might be pretty happy with the infamous culture and what Jane Street pays, but Harb will probably be the one laughing on his way to the bank. BlueCrest portfolio managers take something around 30% of generated PnL as their own pay, compared to 5% at banks. New portfolio managers are set up with between $100m and $1bn in capital. Do the math yourself.
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