Capital introductions teams at prime brokers are increasingly working with registered investment advisers (RIAs), brokerage platforms and other fund distributors as growth in liquid alternatives such as ’40 Act hedge funds continues, a senior exec
Being terminated by a prime broker, unceremoniously or otherwise, can sound the death-knell for a hedge fund. If the principal counter-party no longer wants the business, it is a signal that no one else should either.
Prime brokers could increasingly re-think relationships with some hedge fund clients if managers prove unable to reduce the number of trade fails or mismatches during the settlement process, particularly once the EU’s Central Securities Depository
Seventy per-cent of operational due diligence (ODD) teams at institutional investors have explicit veto authority over hedge fund allocations, and this was exercised in almost 10% of manager reviews in 2012, according to a Deutsche Bank prime brok
The clout of consultants continues to grow, with 65% of pension funds and 45% of insurers acknowledging they use such advisors when making hedge fund allocations, according to the 2013 Goldman Sachs Prime Brokerage survey.