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Goldman jolts traders with bonus warning after bumper haul
Executives in the firm’s global markets division were warned this week that its compensation pool will be slashed by a low double-digit percentage, according to people with knowledge of the discussions. That diverges with industrywide projections and the unit’s own outperformance. Goldman’s annual trading revenue is on track to top $25 billion, with analysts estimating it will eclipse last year’s mark by 15%. The compensation discussions at this stage are the first salvo and could prompt further tinkering. Already, the initial response has sparked a fresh round of back and forth to address some of the concerns.
Walleye Capital quietly hiring for new London office
US multistrategy hedge fund Walleye Capital, which quietly opened a new London office in May 2022, has been hiring. At least five portfolio manager were hired in the past few months, with many arriving in November. The newest hires include Craig Robinson from Tudor Capital Europe, Matt Gormley from Brabus Systematic Alpha, and Rory Magrath from Marble Bar Asset Management. Jonas Hoersch joined from Millennium in October to run equities and Ralph Courtney joined from Marble Bar in August.
New CEO for Flow Traders
Dennis Dijkstra has decided not to continue in his role as chief of the market maker and liquidity provider, Flow Traders. Instead, he plans to transfer authority to the current CFO, Mike Kuehnel, who will take on the position from February 2023. Dijkstra has been at the helm of the firm for well over a decade, first joining in 2009 as CFO before being appointed co-CEO in 2014. Kuehnel joined the firm in August 2021, after spending nine years with management consultants Bain & Company, and previously six years as an executive director within the financial institutions division of Goldman Sachs.
Hedge funds Millennium, Brevan Howard move to fine new hires that back out
Millennium Management and Brevan Howard Asset Management want to penalize money managers who agree to join the firms but later change their minds, in an unusual step to protect themselves from the competition for talent in the hedge fund industry. The two firms are asking new hires to agree to terms in their employment contract that can force them to pay damages if they do not start work as planned, according to people with knowledge of the matter. Conversely, the trader would get paid if the hedge funds decide to pull the job offer. The move, sparked by several traders backing out from jobs they had accepted for sweeter deals elsewhere, shows how far some hedge funds will go to secure a pipeline of top staff as money floods into certain corners of the industry.
TPG taps Tom Montag for ambitious carbon-credit effort
TPG has recruited former Wall Street power broker Tom Montag and partnered with several blue-chip companies to launch a carbon-credit business it hopes will add transparency and boost growth in the nascent market for emissions offsets. The firm is investing $300 million into the new company, called Rubicon Carbon, and is aiming to raise a total of $1 billion to kick-start the effort. Rubicon Carbon is intended to give buyers a simpler and safer way to invest in carbon credits. Montag, who retired last year as COO at Bank of America, is the new company’s CEO. Former BofA colleague Anne Finucane, who retired at the same time as a vice chair, is Rubicon’s chairwoman.
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