Goldman Traders Start Hedge Fund

In an apparent wave of staff departures for greener pastures, a pair of young prop traders are leaving Goldman Sachs's principal strategies desk to launch their own hedge fund.

According to media reports, the young upstarts, who work in the London office of Goldman's, have secured a $300 million investment from Brummer & Partners, the largest Scandinavian hedge fund.

The reports do not mention the new venture's name or if the new fund will be based in London.

According to Business Insider, ever since the Volcker Rule was written into the Dodd-Frank law, Goldman Sachs traders are leaving or thinking about going on their own. For example, BI reports that Morgan Sze started a new hedge fund with a small band of GS traders in Asia, and around nine others are going to KKR.

Expect more GS traders to make their way out the door. As one GS insider told BI: "I watch the world falling apart."

Phil Albinus is the former editor-in-chief of Advanced Trading. He has nearly two decades of journalism experience and has been covering financial technology and regulation for nine years. Before joining Advanced Trading, he served as editor of Waters, a monthly trade journal ... View Full Bio