Prime broker power shift

By Katrina Dean Allen

Sun May 1, 2011

J.P. Morgan expands lead, with Goldman Sachs a close second and Morgan Stanley a distant third.

AR MAGAZINE’S THIRD ANNUAL prime brokerage survey measures prime brokers’ market share among hedge funds that report to the AR database. The results here are compiled from an analysis of 2,547 mandates reported by hedge funds. This year 2,156 funds indicated which prime brokers they employ. Many hedge funds report using multiple prime brokers despite doing the bulk of their business with one or two favorites.

In the absence of detailed information on the breakdown of the business among prime brokers used by a fund, AR divides the assets of these shared mandates equally among the listed prime brokers. The survey thus offers a useful but only partial view of the industry, capturing the prime brokerage choices of those funds managing nearly 89% of the total assets covered by the AR database.

As part of AR’s prime brokerage survey, "The shifting landscape" explores the new environment for...

ISSN: 2151-1845 / CDC10004H

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