Ex-Goldman Sachs principal traders continue slide
Recall that when Goldman Sachs decided to shut down some proprietary trading units, including the Principal Strategies Group, in the face of the looming Volcker Rule, many of the firm's top traders left to start hedge funds.
So how have they fared?
Bloomberg Businessweek weighs in with an article noting their disappointing performances. Morgan Sze's Azentus lost about 4.8 percent from its April 2011 inception through February, Henri Flamand's Edoma lost about 2.4 percent from its November 2010 launch through this February, according to the magazine.
"Other Goldman traders who left the principal strategies unit include Daniele Benatoff, 32, and Ariel Roskis, 36. Their Benros Event Driven & Opportunistic Fund has lost about 1.7 percent in the nine months through February."
Hedge funds as a whole have not fared well over the past year or so, so this isn't all that surprising. At the same time, however, it's often noted that running a hedge fund is a lot different than working as a prop trader within a large trading operation like Goldman Sachs. Many of the skills are transferable of course. But when performance lags, a lot of other skills must rise to the fore. In large part now, success will be determined by customer relations and other softer skills, which can cover a lot of trading disappointments.
That said, these funds are not so far away from their high water marks that they have to hit any panic buttons. One good year can make all the difference.
- here's the article
Ex-Goldman Sachs prop traders struggle at hedge funds