Progress report
An assessment of hedge fund YTD performance in the face of renewed fears for a potential eurozone crash Read More
Against the backdrop of difficult market conditions and growing investor…
09/03/2011
Traders and deal-makers may be the twin forces that control investment banks, but it’s surprising how a good prime brokerage unit – which really fulfils neither of these functions – is also coveted by the average ibank.
Stuart Hendel’s decision on Monday to quit UBS for Merrill Lynch, after leaving Morgan Stanley for the Swiss bank almost two years earlier, shows not only how banks are still prepared to invest in PB units, but also how narrow this sector’s talent pool is.
Those who excel, like Hendel, can command a premium – particularly as the hedge fund industry revives after an enforced slumber and begins doing business again. This new activity – handily summarised by HFR’s positive launch figures (see insight, p4), explains why every bank wants a share of this market.
Hedge fund clients are big contributors to trading fees, will pay for increasingly expensive shorting and are even beginning to show an appetite for more leverage. It’s a good, solid business – one that can help the rest of the bank. Little wonder that Merrill Lynch wanted Hendel – a man with the ability to magnetise clients.
Hendel’s move also shows how competitive this business is. No bank has the right to own this market, particularly in a world of multi-prime. After a challenging 2008, Goldman and Morgan already realise this, but now it is the turn of some of their European benefactors to look over their shoulders at the new chasing pack.
07/06/2012
Join us and our panel of experts for HFMWeek's Subscribers' Club June's UK breakfast briefing, 'Impact…
31/05/2012
The next US HFMWeek Subscribers' Club breakfast, will take place on Thursday May 31. Join us and…
02/02/2011
HFMWeek's European Hedge Fund Services Awards are designed to recognise companies that have outperformed...
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