Hedge funds are poaching top volatility traders from Wall Street banks

hedge funds versus bankers in pandemic 4x3
From left to right: Millennium founder Izzy Englander, Citadel founder Ken Griffin, Balyasny founder Dmitry Balyasny, Citigroup CEO Jane Fraser, Goldman Sachs CEO David Solomon, and Bank of America CEO Brian Moynihan.

  • Buy-side trading firms have poached a slew of star derivatives traders from investment banks.
  • The defections, which follow blowout volatility trading hauls in 2020, leave some banks shorthanded.
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The derivatives traders that thrived during 2020’s once-in-a-decade market shock are now some of the hottest commodities on the street.

But unlike recent years, where Wall Street banks snatched senior talent from each other, marquee hedge funds like Balyasny, Citadel, and Millennium are plundering the rosters at Bank of America, Citigroup, and Goldman Sachs as they deploy their massive hordes of capital and chase riches with expanding volatility strategies of their own.

“Usually it’s just sell-side musical chairs,” one veteran volatility trader told Insider. “This is making things more interesting as the buy-side is scooping up so many people,” leaving fewer senior traders at the banks.

Here’s a look at just some of the recent hires:

Subscribe now for the full rundown on which top traders have made moves and to get all the details from execs and recruiters on what’s driving the poaching frenzy

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