The hedge fund industry is expected to see a wave of new launches in the next year by traders who have lost their jobs at investment banks or who have left in search of better pay.
New rules banning U.S. banks or those with U.S. subsidiaries from risky but potentially profitable proprietary trading are also encouraging some traders to make the move.
Mitt Romney's U.S. presidential election defeat means little chance of the wider regulatory bill being repealed, as he had promised.
'If you consider what's going on for (banks) at the moment from a compensation point of view, plus the increase in regulation and impediments to expressing risk...then working at a hedge fund looks like a compelling option at the moment', said David Barenborg, a portfolio manager at BlackRock Alternative Advisors.
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