Todd Johnson, co-head international prime brokerage
at Deutsche Bank, outlines how a prime broker can be effective
for any start-up fund
The relationship between a hedge fund and its prime broker
is a critical one and therefore the selection of a prime
services provider is a decision that should be considered
carefully by the hedge fund start-up.
As the European hedge fund industry has evolved and a
greater number of service providers have emerged, there is a
perception (rightly or wrongly) that the product offering is
becoming commoditised and, therefore, the selection of a prime
broker can be made based on a few simple factors. The reality
is that there are still many elements of the prime brokerage
service that are differentiating factors between firms.
Therefore, a hedge fund start-up should make sure that they
have a comprehensive understanding of their own requirements so
that the prime broker they ultimately...