Even before the fund scandal broke, a number of fund managers in recent years have left Janus and Invesco for hedge funds, attracted by their freer investment styles and bigger payout, Rocky Mountain News reports.

"A lot of people say the attractiveness is the compensation structure, and sure, certainly everyone in this business wants to make a lot of money," said Trent May, who left Invesco two years ago to start hedge fund company Deer Creek Capital. But even more important, May said, is the ability that hedge funds give him to manage money "in the truest sense."

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