The 'Prime Brokerage & Hedge Fund Investor Survey 2013' special report comprises six separate articles listed below, these can be read individually or as a sequence.
By James Williams – Given that around 90% of the hedge fund industry is dominated by smaller managers running between USD100milllion and USD1.5billion in AuM it is perhaps little surprise that smaller, boutique prime brokerage firms are holding their own against bulge bracket prime brokerages owned by European and US banks.
French bank Societe Generale announced in early November that it was buying the 50 per cent stake held by Credit Agricole in leading derivatives broker Newedge and in doing so assume full control. Subject to regulatory approval the deal is expected to be completed before the end of 2013 and will, according to Duncan Crawford (pictured), Global Co-Head of Alternative Investment Solutions, Prime Clearing Services, be highly advantageous as Newedge looks to diversify its offering.
“As we’ve matured and the industry’s needs have grown, we’ve continued to make investments aimed at providing solutions to emerging and more established managers as opposed to solely supporting the start-up market,” explains Jack Seibald (pictured), managing member at Concept Capital Markets LLC. “Start-up managers remain a core pillar of our business. However, given the increasing regulatory requirements and the demands for greater transparency by investors a lot of the solutions we’ve built answer the needs of managers who might otherwise not have thought of us.”
For Liquid Holdings Group, a comprehensive technology and services firm that focuses on supporting small- to mid-sized hedge funds, the time has never been better to redefine the ‘mini-prime’ model with a stable environment for managers to generate investor and operational alpha.
By Marianne Scordel – A year ago, we explored what hedge fund investors might be looking to buy during the following twelve months, what their attitude towards managers at the smaller end of the spectrum was, and what investment strategies appealed the most.
For award-winning boutique prime brokerage Global Prime Partners this year has seen the firm go from strength to strength, laying further foundations to their reputation as one of the hedge fund industry’s ‘go to’ service providers to small and medium sized hedge funds.