Sat, Apr 19, 2014
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

Banner
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. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably