Bank of America on Friday said that Ian Banwell, its chief investment officer, would resign to start a hedge fund group in which BofA will take a minority stake. BofA will also provide seed capital for several funds at the new firm, to be called Round Table Investment Management.

Walter Muller, BofA’s quantitative finance executive, will take over as chief investment officer. Two other BofA finance executives, Bob Miller and Jason Osier, will join Mr Banwell at Round Table.