Course Director: Jacob Schmidt
The requirements of a successful prime brokerage business are laid out, followed by a look at the risks generated by the business and the systems environment required.
The course examines the nature and key trading strategies of hedge funds and the allocation of margin. The investor's relationship to a hedge funds prime broker is also covered by examining the requirements of a successful prime brokerage business and the key tax and legal issues in both principal ownership and agency ownership structures.
Hedge Funds and the Development of Prime Brokerage
Main hedge fund styles, Opportunistic, Event-driven, Relative value. Measures of performance and developments in investor base. Growth of derivative or hybrid products. Main characteristics and risks associated with hedge funds: market neutrality; credit quality; liquidity; operational hazards.
How does this strategy actually make money? How does it actually work? What are its main risks? Is it really market neutral? A series of detailed case studies.
Why is Prime Brokerage important to Hedge Funds? How exactly do Prime Brokers operations, commercial and legal terms affect Hedge Fund performance and bear upon the Hedge Fund's risks?
What are investors looking for in a Prime Broker? The advent of institutional money to the Prime Brokerage arena and its impact on Hedge Funds' and Prime Brokers' compliance function and operations. Capital introduction described and its risks considered. Proprietary investment in Hedge Funds by Investment banks discussed.
The risks in prime brokerage and how to control them. How Investment Banks look at risk: Corporate credit, Prime Broker risk management. Value at risk explained. Where do a Prime Broker's margin terms come from? Risk theory underlying Prime Brokerage. Prime Brokerage as a dynamic form of securitised credit. The nexus between Risk Management, Legal and Operational Risks. Recent developments. A recent case study of what happens when things go wrong: new, and previously hidden, risks.
Prime Brokerage: Legal and Tax
A: Prime Brokerage, legal relationships and documentation; legal terminology; beneficial ownership
B: Basic building blocks for tax.
Legal Documentation - The Principal Terms and their Importance
Provision of finance; margining and margin requirement; rehypothecation; events of default; close-out; indemnity; force majeure; settlement; consequential loss.
Tax and Legal Implications of Beneficial Ownership
Legal: UK law definition; overseas territories. Tax: Background to tax issues; cross-border issues; access to double taxation treaties; key concepts behind beneficial ownership; practical impact.
Prime Brokerage: The Main Tax Issues
Disposal treatment; exemptions; stamp and transfer duties; agency and reporting issues; manufactured dividends; withholding tax.
Principal vs Agency Long and Short Side Structures
Overview of issues; collateral, settling of short positions, double tax issues, structures on the long side; basic building blocks, prime broker acts as principal, prime broker acts as agent; operational vs. tax. Structures on the short side: basic building blocks, settling of short positions.
Long side; short side; operational versus legal versus tax.
Tue, 01/09/2015 - 13:05
This etfexpress Guide to ETFs, produced specifically for wealth and asset managers, unravels the myriad benefits of including and using ETFs and ETPs within client portfolios... »
Tue, 18/08/2015 - 20:09
The business of asset management has grown exponentially more complex over the last decade. As system technology and data management improves, managers are devising ever-new investment strategies to find that elusive source of alpha. ... »
Tue, 04/08/2015 - 13:50
Over the last 10 years, organisations have undergone a wholesale change in the way they run their businesses. Thanks to cloud-based platforms, wireless Internet, and the proliferation of desktop and mobile device applications, the perimeter of most businesses has moved beyond the four walls of their office. This has revolutionised the way people work: no longer tied to their desks they can be equally as effective aboard an aircraft or sitting next to the beach on vacation. ... »
Fri, 28/08/2015 - 15:27
In this excerpt from Preqin Special Report: Hedge Fund Manager Outlook, we take a closer look at the level of competition in the industry today and use our latest survey results to reveal fund manager predictions for asset growth for the rest of 2015. ... »
Sun, 09/08/2015 - 10:45
The Preqin Special Report: Private Debt Fund Manager Outlook features exclusive survey results drawn from over 100 private debt fund managers worldwide. This extract discusses what fund managers have highlighted as the biggest issues facing the industry and their views on regulation. ... »
Thu, 30/07/2015 - 11:00
Cybersecurity is no longer simply an IT issue, it is now a business issue. This is the conclusion of the experts and fund managers around the world whose opinions were polled for this landmark Hedgeweek Special Report, which outlines Best Practices for Cybersecurity in a fast-changing environment where managers need to keep several steps ahead of cyber criminals... »
Thu, 03 Sep 2015 00:00:00 GMTJunior C# Software Developer - Hedge Fund
Thu, 03 Sep 2015 00:00:00 GMTPrivate Equity/Real Estate Investor Relations – Asset Management - London
Thu, 03 Sep 2015 00:00:00 GMT