The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

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. Last year we were speaking to investors who were asking for a one-year to three-year track record, starting with funds of $200 million to $500 million – those criteria have relaxed a little now."

At one time that was great news for prime brokers, which would have been jostling for clients and boosting capital introduction teams.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree