An alumnus from Deutsche Bank has raised the first billion dollar hedge fund this year, although financiers of start-ups have cautioned against exuberance, saying it could be the only firm "in the foreseeable future" to do so.

Arvind Raghunathan, former head of the global arbitrage business at Deutsche Bank, has raised about $1.2bn (€720m) for his newly-launched Roc Capital Management in New York, according to Bloomberg. Roc's assets will include $500m in a separate account from Deutsche Bank.