Two traders from Goldman Sachs's now defunct proprietary trading desk have started up their own fund, Auscap Asset Management, in Sydney.
Tim Carleton, 31, and Matthew Parker, 36, were forced out of the bank in November last year after the Australian business, Goldman Sachs & Partners, was acquired by its US parent.
The change in ownership subjected the Australian operations to US Dodd-Frank regulatory reforms aimed at making banks safer. One of the provisions of the bill, the Volcker Rule, prohibits commercial banks from making proprietary trades with their own capital.
The pair are not allowed to use their performance numbers at Goldman to market the new venture, but sources estimate the proprietary strategies team, of which they were a part, accounted for one-third to one-half of profits at Goldman Sachs & Partners.
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