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Pierre -Henri Flammand and Morgan Sze reportedly earned $4.5 billion in profits for their own hedge funds but have failed to earn money for their clients.  Both traders were former employees of the notorious Goldman Sachs Group, Inc. (NYSE:GS) and were among the small group of people who left the company.

The company Flammand started is titled Edoma Capital Partners LLP and it earns most of their profits from major company changes  such as mergers and bankruptcies. The Hedge Fund Research Inc. from Chicago reports that all of their funds had an average increase of about 2.6. Some of those funds averaged 3.9 within two years.

Sze launched his own hedge fund company called Azentus Capital Management LTD in Hong Kong and he hired thirteen fellow traders from Goldman-Sachs. Like Flammand, Sze’s company also operated on event-driven funds and unfortunately, his venture also experienced a significant financial loss. Since the launch of the company last year, his company lost about 4.8 percent.

EFG Asset Management lead researcher Matias Ringel explained why they are having a hard time adjusting to this new business opportunity, “In spite of their pedigree, many ex-Goldman prop traders have found it much harder than they originally thought to make money.”

Sze and Flammand weren’t the only former Goldman-Sachs employees who falter at finding financial success on their own. Ariel Roskis and Daniele Benatoff lost a lot of money in the stock market in 2011 and are now trailing this year. Another former trader, Elif Aktug, has her own business venture in the works as a money manager.

Trading stocks and bonds is a risky venture, but when you add that with another venture that has a great potential of  money-loss, like creating your own company, that risk is even greater. Hopefully, it won’t be long before both hedge-fund companies find their path to success.