Barclays has expanded the scale of its trading relationship with Qube Research & Technologies to more than $100bn in gross notional positions, underscoring the growing importance of the multi-strategy hedge fund to the bank’s prime brokerage operation, according to a report by Bloomberg.
The London-based hedge fund, better known as QRT, is now one of Barclays’ largest prime brokerage clients, according to people familiar with the relationship.
The $100bn-plus figure represents the gross face value of QRT’s positions handled through Barclays before offsetting trades are taken into account. It therefore does not represent the bank’s actual economic exposure.
Barclays said its net exposure is significantly lower after accounting for offsetting positions, netting arrangements, collateral and other risk controls.
QRT, which manages around $55bn, uses a network of banks to support its trading activities. The firm has relationships with about 15 banks for equities and roughly 30 for fixed-income repurchase agreements, according to a person familiar with its operations.
JPMorgan, Goldman Sachs, Morgan Stanley and UBS are among its other prime brokers.
QRT has grown rapidly since emerging from Credit Suisse in 2018 through a management buyout involving around 100 employees.
The firm has since developed into a large multi-strategy hedge fund with both quantitative and discretionary trading capabilities.
Its regulatory assets have risen sharply alongside that expansion to approximately $575bn according two a its latest public disclosure in March, almost 65% higher than two years earlier.
Fasanara Capital hires Jefferies veteran to expand Abu Dhabi credit business
Fasanara Capital has hired former Jefferies executive Gaurav Sanan as Managing Director and Portfolio Manager to lead a new working capital…
More
Verition faces wrongful dismissal lawsuit from former Asia-Pacific recruitment head
Verition Fund Management is facing a wrongful dismissal lawsuit brought by its former Asia-Pacific head of business development, Xiang…
More
Man Group secures $1.3bn investment commitment in Japanese insurer tie-up
Meiji Yasuda Life Insurance plans to acquire a 5% stake in Man Group and allocate $1.3bn over the next three years, as part of a strategic…
More