The effects of the much talked about "Volcker Rule" are already being felt as banks shed or reorganize their prop desks in anticipation of coming regulations. The dynamic has left many successful prop traders looking for a new home. While many of these displaced traders will surely join existing funds, expect that many others will form new funds. While you might expect these traders to achieve success in the private fund world, there are significant challenges which they must overcome, including operational hurdles and restrictions on the use of past performance in marketing a fledgling hedge fund. We have been fascinated by this development and recently covered the story in depth at this link http://www.pleaseposttheartical.com...anecdotal evidence of this trend in practice.