Mon, Jan 16, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Ernst & Young’s survey details adaptability of prime brokers on back of changing hedge fund industry

Tuesday, September 24, 2013

Beverly Chandler, Opalesque London:

Ernst & Young’s latest survey of prime brokers finds that the industry is facing fresh challenges with the shifting climate of the hedge fund industry and increased regulatory requirement. The firm found that the largest prime brokers were attempting to stand out by offering unique products and using their ability to leverage of proprietary technologies and organisational efficiencies to better identify client needs.

Key takeaways from the survey included:

  • Elusive revenues

    Pressure on fees and the multi-prime trend in the prime brokerage industry are slowing the industry’s full recovery from the depths of the global financial crisis. Global prime brokerage revenues in 2012 were estimated at $12bn, down from $15bn in 2008. Hedge funds continue to diversify across number of prime brokers to alleviate concerns on counterparty risk.

    In 2006, the top two prime brokers, Goldman Sachs and Morgan Stanley, accounted for 52% of hedge fund assets. In 2012, they accounted for less than 33%. And medium-size prime brokers have been the beneficiaries as hedge funds diversified away from the giants, and international firms such as Deutsche Bank and Credit Suisse have made large inroads in the Americas.

  • Boosting profitability

    The prerequisite for creating a business mo......................

    To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Southpoint Capital gains 3.8% in Q3, bringing year-to-date returns to 5.2%[more]

    From Valuewalk.com: Southpoint Capital Advisors, the $3 billion New York hedge fund founded by former employees of David Einhorn’s Greenlight Capital, added 3.8% net during the third quarter of 2016, bringing year-to-date returns to 5.2% and cumulative returns since inception (July 2004) of 237.4% a

  2. The Big Picture: The case for emerging market debt in 2017[more]

    Benedicte Gravrand, Opalesque Geneva: Emerging market (EM) assets outperformed in 2016 mainly because of stronger fundamentals and an improving international environment, with GDP picking up speed, leading to positive earnings revisions for the first time in five years,

  3. Hedge funds gain across strategies in December, outperform MSCI to close at record index level in 2016[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted gains across all strategies in December to conclude 2016, with the HFRI Fund Weighted Composite Index (FWC) rising to a record index value level as oil prices surged, equities gained and U.S. interest rates increased into year end, accordin

  4. Performance - BlackRock's robot stock-pickers post record losses, Soros-backed fund Glen Point loses in first trading year, Regal Funds Management: Bleak year as returns in key funds plunge 25pc, Elm Ridge Capital up 25% in 2016[more]

    BlackRock's robot stock-pickers post record losses From Bloomberg.com: Like so many fund titans these days, Laurence D. Fink is betting on machines to turn around BlackRock Inc.'s beleaguered stock-picking business. Trouble is, they just might have made things worse. BlackRock

  5. Eurekahedge Hedge Fund Index up 1.01% in December (+4.48% YTD)[more]

    Hedge funds gained 1.01% during the month of December, with 2016 returns coming in at 4.48%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 2.38% in December with its 2016 returns coming in at 7.37%. North American equity markets traded higher in December as t