Ever since debate over the Volcker Rule started up, even before Dodd-Frank was passed, people have been wondering whether sell-side traders would make their way to hedge funds. Now that the dust is settling on the bonus season, Reuters speculates we may see a mass movement to hedge funds by proprietary traders.

For one thing, bonuses for sell-side traders were down substantially, as expected given the kind of year most trading desks had. In addition, the full impact of the Volcker Rule may be starting to dawn.

So "people on proprietary trading desks are showing a greater level of interest in hedge funds than in the past," one expert told the news service.

Meanwhile, the environment looks good for hedge funds, where it's still possible to make a whole lot of dough. Just ask John Paulson, who raked in $5 billion for 2010. Data shows that on average, senior equity professionals at hedge funds--including portfolio managers, traders and analysts--made $875,000 last year, up from $800,000 in 2009, while the average for fixed income traders rose to $1.1 million from $1.0 million, notes Reuters.

The headhunters are active. A lot of jockeying and interviewing is going on.

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