UPDATE 1-JP Morgan star trader Gulati quits to set up hedge fund - FT
Feb 14 (Reuters) - JPMorgan Chase & Co's global head of equity proprietary trading has quit the investment bank to set up a hedge fund in Switzerland, the Financial Times reported on Thursday.
Deepak Gulati, one of the bank's star traders, will launch Argentière Capital sometime in the second or third quarter of this year, the financial daily quoted two people familiar with the plans. ()
The report also said the hedge fund would be based in Zug, the low-tax Swiss canton also home to global commodities trader Glencore International Plc.
Marketers expect Argentière to raise as much as $500 million for its launch, the FT said.
JPMorgan spokesman Brian Marchiony said the company declined to comment on the report.
New rules banning U.S. banks or those with U.S. subsidiaries from risky but potentially profitable proprietary trading are encouraging some traders to move to hedge funds.
Proprietary trading, or trading with the bank's own money, can closely resemble trading in the hedge fund business and has turned out big profits before the financial crisis.
But the U.S. Dodd-Frank bill, introduced under President Barack Obama, includes a ban, known as the Volcker rule, on proprietary trading because it is risky.
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