Anyone would think it’s easy to get into a hedge fund these days, particularly if you’re a trader. In the past week GLG partners hired two traders from Morgan Stanley and one from Goldman. CQS and Marshall Wace are also said to be scouting for disaffected banking talent (FT).

Despite dire first half results (The Times), headhunters say the bottom hasn’t fallen out of hedge fund hiring. “There’s still work,” says David Durham, managing director of Durham Consulting. “I got a call this morning from a hedge fund looking for a whole pool of equity analysts.”

Traders in banks have ample incentives to make the move. With banks keen to rein in risk and Merrill, JPMorgan and Lehman all in danger of being downgraded (MarketWatch), they’re allegedly eager to work in an environment where their activities are less constrained.

“Trading limits are tighter, VaR is less and above all balance sheets are more restrictive than ever,” says Shaun Springer, chief exec of search firm Napier Scott. “If you’re a trader in a bank, there’s a lot less to play with.”

Banks are also encouraging top traders to branch out on their own and then investing in their funds. “They’ve had limits imposed on their trading activities and are supported by the bank which often wants to free up capital,” says the MD of a company helping hedge fund start-ups.

Hedge fund roles remain off-limits for all but top performers, however.

Durham says the equity researchers he’s looking for need to be from the likes of Goldman or Morgan Stanley. Redundant bankers aren’t on the radar: “I met a portfolio manager who’d been in charge of a $7bn fund which is now worth zero. He asked if I could get him a job. I had to admit that it was unlikely.”