The prime brokerage industry has been thrown into the spotlight following events like the Gamestop run and the Archegos collapse. But despite the reputational challenges experienced by some of the larger players, commentators essentially welcome the increasing scrutiny. 

This report outlines the elements of service which have served prime brokers well in the current environment, including the rise of outsourced trading and the appetite for boutique providers. It also identifies the positive outlook for the hedge fund industry at large, which will in turn, take prime brokerage on an upward trajectory as well. 

Hong Kong has implemented a number of regulatory and legislative changes to support its growth as a financial hub in Asia. The introduction of the Limited Partnership Fund (LPF) regime, amendments to the existing Open-Ended Fund Company (OFC) regime and reforms to change the tax treatment of carried interest are the most lauded changes being ushered in. 

This report outlines the trajectory the jurisdiction is expected to follow in achieving its objectives. As travel restrictions begin to lift, business from Chinese managers is anticipated to increase. Further, in view of investors’ continued appetite for alternative assets, Hong Kong can offer managers the opportunity to tap into Asian assets and investors. The report also discusses how managers are broadening their fund portfolio and planning to launch several funds from a single umbrella structures, with Hong Kong playing a central role. 
 

This report outlines the market drivers which collided to make Special Acquisitions Company (SPAC) deals attractive and what potential target companies should do in preparation of such a transaction. It also identifies the necessary support SPAC sponsors require in order for their venture to be successful. 
 

The concept of outsourced trading is not new to hedge funds, but its relevance has arguably come to the fore over the last 12 months as managers of all shapes and sizes seek out ways to run their businesses as cost-effectively as possible.

Lying at the heart of the proposition is the ability to leverage a team of outsourced trading professionals located in multiple jurisdictions, who act as a genuine extension of the front-office.

Not only does this give hedge fund managers the chance to run their portfolios using a ‘follow the sun’ trading model (if they have a global mandate that is), it avoids them having to build their own expensive trading infrastructure, as well as the associated costs of hiring top talent.

In this latest report, we deep dive into how Cowen’s Outsourced Trading Solution is able to support hedge funds with an array of services, and what its growth outlook is for 2021.

To get in touch with the Cowen team click here.

Following a year of strong sector performance and growing appetite from investors, new hedge funds must work even harder to stand out from the crowd. This report details the primary opportunities and challenges facing startup hedge fund managers.