When a flood of employees walk away from a firm in the current economic environment, it’s almost always due to a negative event. Either a hedge fund is hemorrhaging money or a bank’s deeply embroiled in scandal, adversely affecting business. Or, as with the case of Cantor Fitzgerald, the firm’s just a revolving door.
Greenwich, CT-based Tudor Investment Corp. may be an exception to the rule. The hedge fund has seen at least nine employees, including two big name traders, leave the firm since December, according to Bloomberg. Tudor is not in any legal trouble and, while returns are down, the firm’s main Tudor BVI Global Fund returned 6.3% in 2012, up from 2.2% in 2011.
The reason for the departures is reportedly a change in strategy, wherein the firm will allocate fewer resources to equity trading in Asia and focus more on macro strategies. Now the firm is actively looking to recruit traders to help implement its new strategy, says Bloomberg. A representative at Tudor could not be reached for comment.
Not often in these times do you find a firm with no real scars recruiting talent. Tudor may be worth a look.
This week’s pre-bonus cuts at BarCap were just the start. The firm will also lay off an additional 275 New York office employees in May as part of its strategic review. Cash bonuses may also be deferred for some bankers for at least a year.
Frank Raiter, a former managing director for residential mortgage-backed securities at S&P, warned the ratings firm of its risky behavior nearly a decade ago, but says he’s no whistle blower. S&P faces a $5 billion case for allegedly weakening its credit rating standards to win more business.
Credit Suisse plans to cut costs by $4.28 billion this year, up from the initial estimate of around $4 billion.
Private equity firm KKR booked a strong fourth quarter, nearly doubling profits from last year’s Q4. And unlike other firms who made money, KKR rewarded its staff. Compensation and benefits expenses rose 37%.
Not often does a chief executive voluntarily leave his post to become the global head of equities elsewhere. That’s exactly what happened with Peter Harrison, CEO of boutique fund manager RWC Partners, who is set to join Schroders in March, fueling speculation that Harrison is being groomed to succeed longtime Schroders CEO Michael Dobson.
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Buzz Around the Office
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