 In this new world of Wall Street uncertainty, bank proprietary trading sits high on the list of potential casualties. Less than 12 months ago, high-flying banks announced record earnings, citing their proprietary efforts as one of the key drivers if not the major force behind record-breaking profits. In fact, one of the most notable players, Goldman Sachs’ Group—Global Principal Strategies Group—posted multibillion-dollar quarterly profits over the past few years. We will not see such soaring numbers for some time to come. |
 The growth and evolution of hedge funds have led to an increasing need to build out independent risk functions. Only a few years ago, multi-billion-dollar, multi-strategy hedge funds alone had formal risk-management functions. For example, in the past, funds launched with a few hundred million dollars tended not to have risk managers, though as they neared the one-to-two billion-dollar mark, they began to build out the function. |
