Trading places


The proliferation of hedge funds in recent years has given dealers with proprietary trading operations a human-resources headache. Dealers’ languishing firm-wide profits ofetn prevent them from paying their best proprietary traders top dollar. So traders have abandoned the sell side in droves for more lucrative jobs with hedge funds.

Some banks looking to fight back have invested heavily in independent or semi-autonomous hedge funds. Akin to outsourcing a proprietary desk, this is one way to