Hedge funds are poaching top volatility traders from Wall Street banks

  • 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: 

Goldman Sachs

  • Moran Forman, MD in index derivatives trading, joined Rokos Capital
  • Travis Potter, MD in equity derivatives trading, joined Balyasny
  • Shawn Tuteja, index equity derivatives trading, joined BlueCrest
  • Alina Fiato, associate in equity derivatives trading, joined Jane Street

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