If you make it to MD on the trading floor of a large investment bank, then quit for a big pay-day at a hedge fund and it doesn’t work out – what next?
Many traders who jumped to the buy-side are flooding back to investment banks once again (as they have been for the last two years, anyway), but in the case former Goldman trader David Perez, the answer is to go it alone.
Perez, a former managing director and senior equity index volatility trader at Goldman Sachs in New York, has just started an alternative lending platform called YAD Capital.
We haven't spoken to Perez, but his career since Goldman seems to typify that of ex-bank traders who find themselves at challenging hedge funds. Perez left Goldman after 13 years in 2014. He joined hedge fund MKP Capital Management, but left again in November and has just resurfaced as co-founder and CEO of YAD.
When Perez joined MKP, it was in growth mode. It had just opened an office in London and was hiring for its New York operation. MKP tapped senior markets staff at investment banks, many of whom have since departed after a difficult few years for the hedge fund.
With YAD, Perez is tapping the trend for hedge funds moving into the lending space as banks downsize their balance sheets.
He's not the only ex-bank trader who joined MKP to decide self-sufficiency is best. Andrew Quessy, a senior macro portfolio manager who joined MKP’s London operation from UBS departed in November and started Affiniti Finance – a company that supports “individuals and companies seeking access to justice”.
Some of MKP's traders have simply gone back into banking, though. In New York, Eric Winograd, a managing director within strategy and research at MKP Capital who came from HSBC in 2010, departed for Alliance Bernstein in February. Stephane Dannibale, the former head of US government bond trading at Citigroup who joined MKP as a macro portfolio manager in 2015, joined HSBC as an MD in the middle of last year.
Image: Getty Images