Just how are prime brokers going to make sure they are just that – a hedge fund’s prime broker? Competition is heating up among them as they make the startling discovery that hedge fund managers are not averse to using more than one prime broker at the same time [see Fund Management news, Hedge funds go outsourcing, this issue].
Now that hedge fund managers have squeezed prime brokerage fees, the only means of differentiation is levels of service, and managers are rightly prepared to shop around and use several specialists if need be.
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