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 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. This includes $500m from his former employee.