Finadium has released a new survey, Hedge Funds on Prime Brokerage Services and Technology. This report presents the first part of Finadium’s 2013 surveying of hedge fund managers and includes hedge fund prioritization of the services that prime brokers provide. Distribution rights to the report have been purchased by SunGard, making the report publicly available with registration.
In conjunction with the report, Finadium and SunGard will host a webinar on Wednesday June 26 at 11:00 EST/16:00 GMT to discuss the results. The registration details are:
Registration Link: https://sungard.webex.com/sungard/onstage/g.php?d=656541406&t=a
Registration password: webinar
Event password: webinar
Prime brokers remain critical business partners for hedge funds in North America and Europe, but the nature of the relationship is changing. Hedge funds continue to rely on prime brokers to clear and report trades but also want to establish themselves as independent firms that can function successfully with multiple prime brokers, but without needing any one bank to succeed. This extends through to databases for trade reporting, data collection on stock loan rates and the ability to show investors that the hedge fund is a robust entity with its own infrastructure. While some of these lessons were learned after Lehmanʼs failure, the change in attitude now includes thinking about technology, service levels and what hedge funds want most from their prime broker partners.
This report presents how a sample of hedge funds views the technology and service levels provided by their prime brokers, and their thinking on the right mix of internal technology versus technology provided by a prime broker. Hedge funds are a diverse group and putting one stamp across every fund is a difficult task. However, our survey shows some general trends that prime brokers may want to consider in servicing their clients in the current financial market environment.
This report should be read by prime brokers, by hedge funds working to optimize their prime brokerage relationships and by third party service providers to both prime brokers and hedge funds.