Prime Brokerage Suite of Services Expanding

Below is are a few excerpts from a recent article by IDD on the revolution of the prime brokerage business.

Prime brokers are an attractive bet to firms like Sequoia — which made its investment through the Sequoia Capital U.S. Growth Fund, with nearly $900 million under management — because they are an integral part of a hedge fund’s business. They provide the lending, clearing and settlement services that hedge fund managers rely on. Increasingly, however, prime brokers’ stock has risen in value as they bend with the changes hedge funds are experiencing.

In some cases prime brokers are expanding their role and realigning their business models to compensate for the decline in profits tied to the smaller pools of assets that hedge funds are managing. Just this week, for example, the industry lost another $3 billion when the Pequot Capital Management hedge fund revealed that it was winding down its funds and closing its doors in response to an investigation involving insider trading.

“Prime brokers are pulling back on capital introduction, consulting and financing. There are hedge fund clients looking for solutions, things they used to turn to that are not available anymore,” says Dailey. Prime brokers have also done away with supplying shared office space to hedge funds, a common practice in which 20 to 30 hedge funds shared quarters to save on expenses; it was begun in the ’80s at Furman Selz.” Read more…

Related to Prime Brokerage Suite of Services Expanding:

• Hedge Fund Business Consulting
• Hedge Fund Training Course | CHA Designation Program
• Hedge Fund Business Model
• Hedge Fund Startups | Starting a Hedge Fund
• List of Hedge Funds | Directory of Contacts
• Hedge Fund Startups | Where are they located?
• Hedge Fund Due Diligence

Tags: Prime Brokerage Services, prime brokerage hedge fund services, suite of prime brokerage services, expanding prime broker services, prime broker, prime brokerage

Prime Brokerage Suite of Services Expanding

Below is are a few excerpts from a recent article by IDD on the revolution of the prime brokerage business.

Prime brokers are an attractive bet to firms like Sequoia — which made its investment through the Sequoia Capital U.S. Growth Fund, with nearly $900 million under management — because they are an integral part of a hedge fund’s business. They provide the lending, clearing and settlement services that hedge fund managers rely on. Increasingly, however, prime brokers’ stock has risen in value as they bend with the changes hedge funds are experiencing.

In some cases prime brokers are expanding their role and realigning their business models to compensate for the decline in profits tied to the smaller pools of assets that hedge funds are managing. Just this week, for example, the industry lost another $3 billion when the Pequot Capital Management hedge fund revealed that it was winding down its funds and closing its doors in response to an investigation involving insider trading.

“Prime brokers are pulling back on capital introduction, consulting and financing. There are hedge fund clients looking for solutions, things they used to turn to that are not available anymore,” says Dailey. Prime brokers have also done away with supplying shared office space to hedge funds, a common practice in which 20 to 30 hedge funds shared quarters to save on expenses; it was begun in the ’80s at Furman Selz.” Read more…

Related to Prime Brokerage Suite of Services Expanding:

• Hedge Fund Business Consulting
• Hedge Fund Training Course | CHA Designation Program
• Hedge Fund Business Model
• Hedge Fund Startups | Starting a Hedge Fund
• List of Hedge Funds | Directory of Contacts
• Hedge Fund Startups | Where are they located?
• Hedge Fund Due Diligence

Tags: Prime Brokerage Services, prime brokerage hedge fund services, suite of prime brokerage services, expanding prime broker services, prime broker, prime brokerage

Switching Prime Brokers

Switching Prime Brokerage Firms

(http://PrimeBrokerageGuide.com) Lately you might have noticed an ongoing “battle of the press releases” in the media by many prime brokerage firms. These are typically written so that the firm is positioned as being safe, technologically advanced or recently swamped with new business. This is because these firms know that many decisions are being made each day right now by hedge fund managers regarding where to prime.

More funds than ever before are now deciding to multi-prime or switch prime brokers altogether. Here is a reason excerpt and quote from someone at UBS speaking to this point:

Across Wall Street, hundreds of investment funds that relied on broker-dealers established accounts with commercial banks boasting stronger credit. The moves have shaken up a business long dominated by Morgan Stanley, Goldman Sachs Group Inc and Bear Stearns.

“It’s a $2 trillion business and in normal market conditions, people kill themselves to move 1 percent of market share. In recent weeks, probably 35 to 40 percent of global market share has been redistributed,” said Alex Ehrlich, global head of prime services at UBS. “Never has there been a more disruptive period.”

Related to Switch Prime Brokerage Firms | Prime Brokers:

• Prime Brokerage Jobs
• Hedge Fund Operational Support
• Prime Brokerage Global Custody
• Research Services for Hedge Funds
• Precious Metals and Foreign Exchange Services

Tags: Switching Prime Brokers | Prime Brokerage Firms, switching prime brokerage firms, changing prime brokers, change prime broker, prime brokerage service options, prime brokerage services

Switching Prime Brokers

Switching Prime Brokerage Firms

(http://PrimeBrokerageGuide.com) Lately you might have noticed an ongoing “battle of the press releases” in the media by many prime brokerage firms. These are typically written so that the firm is positioned as being safe, technologically advanced or recently swamped with new business. This is because these firms know that many decisions are being made each day right now by hedge fund managers regarding where to prime.

More funds than ever before are now deciding to multi-prime or switch prime brokers altogether. Here is a reason excerpt and quote from someone at UBS speaking to this point:

Across Wall Street, hundreds of investment funds that relied on broker-dealers established accounts with commercial banks boasting stronger credit. The moves have shaken up a business long dominated by Morgan Stanley, Goldman Sachs Group Inc and Bear Stearns.

“It’s a $2 trillion business and in normal market conditions, people kill themselves to move 1 percent of market share. In recent weeks, probably 35 to 40 percent of global market share has been redistributed,” said Alex Ehrlich, global head of prime services at UBS. “Never has there been a more disruptive period.”

Related to Switching Prime Brokers | Prime Brokerage Firms:

• Hedge Fund Prime Brokers
• Prime Brokerage Services
• Prime Broker Definition
• Best Prime Broker
• Capital Introduction
• Prime Brokerage
• http://PrimeBrokerageGuide.com
• Investment Book
• Hedge Fund Terms and Definitions

Tags: Switching Prime Brokers | Prime Brokerage Firms, switching prime brokerage firms, changing prime brokers, change prime broker, prime brokerage service options, prime brokerage services

Here is a short list of prime brokerage services:

• Lending Securities
• Hedge Fund Startup Services
• Accessing local shares abroad
• Cash Management
• Capital Introductions – Asset Raising
• Real Estate Identification or Office Space – Hedge Fund hotels
• Access to Hedge Fund Lawyers focussing on hedge fund clients
• Headhunting & talent identification to help build portfolio management teams
• Third Party Marketing Due Diligence
• Clearance & Custody of Assets
• Portfolio Reporting
• Branding & Marketing
• IT Consultations
• Compliance & Risk Management

Permanent Link: Prime Brokerage Services

Tags: Prime Brokerage Services, prime broker services, what services does a prime broker provide?

Quick Link: List of Hedge Fund Prime Brokers

Here is a short video on prime brokerage – http://youtube.com/watch?v=DHTatIV7jns This video video discusses the importance of what prime brokers do and what types of services many prime brokerage firms offer to hedge funds. While the importance and breadth of prime brokerage services expands each year, it can be hard to learn much about them online.

Read dozens of additional articles like this within the guide to Hedge Fund Terms.

- Richard

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Articles Related to Prime Brokerage

1. Hedge Fund Prime Brokers
2. Prime Brokerage Services
3. Prime Broker Definition
4. Best Prime Broker
5. Capital Introduction
6. What is a Hedge Fund ?
7. Prime Brokerage Market Share
8. Hedge Fund Employment
9. Hedge Fund Strategy
10. Hedge Fund Videos

Tired of reading articles? Watch more videos like this one above within the Hedge Fund Videos Directory.

Permanent Link: Prime Brokerage

Tags: Prime Brokerage, Prime Brokerage Services, Prime Brokerage Survey, FX prime brokerage, Currency Prime Brokerage, Synthetic Prime Brokerage, Prime Brokerage Trading, Prime Brokerage Agreement, Prime Brokerage Account, Prime Brokerage Business, Prime Brokerage Hedge Funds

We will soon be posting more details on the prime brokerage industry. For now please see http://primebrokerageguide.com for more information on prime brokerage services.

Permanent Link: Prime Brokerage Services

Prime Brokerage Services

Prime Brokerage Services List

Quick Link: List of Hedge Fund Prime Brokers

I have gotten many questions from professionals in the hedge fund industry regarding prime brokerage services for hedge funds. I couldn’t easily find a list of services that prime brokerage shops offer so here is a non-exhaustive but growing list of services that I know some prime brokerage firms provide to their hedge fund manager clients.

• Lending Securities
• Hedge Fund Startup Services
• Accessing local shares abroad
• Cash Management
• Capital Introductions – Asset Raising
• Real Estate Identification or Office Space – Hedge Fund hotels
• Access to Hedge Fund Lawyers focussing on hedge fund clients
• Headhunting & talent identification to help build portfolio management teams
• Third Party Marketing Due Diligence
• Clearance & Custody of Assets
• Portfolio Reporting
• Branding & Marketing
• IT Consultations
• Compliance & Risk Management

- Richard

Subscribe To this Blog via Email Or RSS

Articles Related to Prime Brokerage Services

1. Hedge Fund Prime Brokers
2. Hedge Fund Marketing
3. Hedge Fund Service Directory
4. Prime Broker Definition
5. Best Prime Broker
6. Capital Introductions
7. Prime Brokerage
8. Capital Introduction
9. Prime Brokerage Services
10. Hedge Fund Videos

Permanent Link: Prime Brokerage Services

Tags: Prime Brokerage Services, Prime Broker Services, Prime Brokers Services, Hedge Fund Prime Broker Services, Hedge Funds Prime Brokerage Firms, Prime Brokerage Services for Hedge Funds