Moore Capital Management LP, the hedge fund founded by Louis Bacon, hired former Morgan Stanley (MS:US) executive Patrick Lynch as a credit portfolio manager at the $15 billion firm, according to an investor.
Lynch, 42, started this week at Moore’s London office, said the investor, who asked not to be named because the fund is private.
Lynch left Morgan Stanley in January. He was most recently head of European credit sales and trading, based in London. He had previously headed the bank’s Asian corporate credit group in Hong Kong and worked on the high-yield desk in New York.
Hedge funds are benefiting as Wall Street’s biggest banks have lost almost two dozen of their most-profitable credit traders in the past 13 months amid tighter rules. Regulators have sought to restrict proprietary trading, which limits risk- taking by banks. In the U.S., the so-called Volcker rule, the provision in the 2010 Dodd-Frank Act named for former Federal Reserve Chairman Paul Volcker, will set limits on risk-taking by banks with federally insured deposits.
Banks are also cutting and deferring pay, sending traders to seek better opportunities at hedge funds and investment firms that seek to profit in markets lenders are retreating from.
Shawn Pattison, a spokesman for Moore Capital, declined to comment on the hire.
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