Hedge funds: Prime brokers reassess their strategies

Faced with increased capital requirements and regulatory changes, prime brokers are having to think of ways to become more efficient with their balance sheets.

Hedge fund launches are increasing once again. In the first quarter of this year alone there were almost 300, according to Hedge Fund Research – the third-highest quarterly launch rate since 2008. Investors are feeling more confident and appetite for risk is increasing. Marlin Naidoo, head of hedge fund capital at Deutsche Bank, says: “Since 2008 it has been hard for smaller funds to launch, but now investors are in a good place once again and are looking for new ideas.

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