In the latest move of its kind, two veteran Morgan Stanley analysts have left the bank in favor of working in hedge funds, Reuters reports.

William de Winton, who co-headed the European banks research division, and Colum McCoole, head of Morgan’s European convertibles research wing, followed the firm’s No. 1 stock strategist, Steve Galbraith, into what is becoming a lucrative and opportunistic sector. Last week, Galbraith quit Morgan Stanley for hedge fund Maverick Capital.

McCoole will be joining Plutus Capital Management while de Winton, who headed the 2003 Reuters-Institutional Investor European survey’s top research team in its sector, will go on to Landsdowne Partners.

The cutting of costs and new regulations at banks has driven many highly touted analysts at major banks to the less-strict hedge fund industry.

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