What Brokers Do Hedge Funds Use?


Written By: Ehsan Jahandarpour

what brokers do hedge funds use

If you’re thinking about starting a hedge fund, you may wonder what brokers they use. There are many options available, including Morgan Stanley, Merrill Lynch, and J.P. Morgan, but it’s important to choose the best one for your specific needs. Here are some questions to ask before you make your decision.

Morgan Stanley

Morgan Stanley is a well-known broker used by many hedge funds. Its prime brokerage business is renowned for its partnership approach and bespoke approach to working with clients. This approach helps the company attract 60 to 100 new hedge fund launches each year, in addition to the world’s largest alternative asset managers.

Morgan Stanley is a global financial services firm with leading positions in capital markets, investment banking, and research. It is also one of the largest asset management companies in the world. The company also works with other investment firms and has close relationships with investment managers, academics, and prime brokers.

Goldman Sachs

Goldman Sachs is one of the most prominent prime brokers for hedge funds, but the company has also seen its business suffer recently. As a result, the company has been forced to make some changes to its business model. This includes removing less profitable hedge funds from its prime brokerage platform. In addition, the firm is also scrambling to find alternative sources of financing to help small hedge funds grow.

The broker may have long or short positions in securities held by the hedge fund. It may also hold positions in derivatives linked to those securities. Depending on the fund’s strategy, GOLDMAN SACHS may have a position in the index that the fund invests in.

Merrill Lynch

If you are looking to invest in the stock market, Merrill Lynch is a good choice. They provide a wide range of products and services. Previously, they were located in New York City, at 250 Vesey Street and the Brookfield Place complex. They have 14,000 financial analysts and manage $2.3 trillion in client assets. They also provide their clients with a range of tools, such as Merrill Edge, an electronic trading platform.

Merrill Edge has excellent portfolio analysis capabilities. Clients can request portfolio reports overnight, which gives them a good idea of how their portfolio is performing. They can also view performance by holdings, MSCI ESG scores, and analyst ratings. This proprietary tool is an exceptional piece of portfolio analysis technology and makes it easy to see your portfolio’s performance and how it compares with the market as a whole.

J.P. Morgan

Despite the fact that most hedge funds use other brokers to execute their trades, J.P. Morgan has its own platform. The company offers a suite of tools and services to hedge funds. These tools range from prime custody to fund administration and optimized margin solutions. The company’s global footprint and local support allow it to support hedge funds worldwide. It also offers consulting services and industry data analysis.

In addition to its online platform, J.P. Morgan offers a referral program that allows investors to earn $50 when they refer a friend to the firm. This bonus is credited to both the customer’s account and the referral’s. Customers who refer new clients can take advantage of this offer within 30 days of registering for an account.

UBS

UBS is a bank that provides prime brokerage services to hedge funds, which they can draw upon as they grow. These services include help with raising capital, deciding which technology they need and processing trades. The Zurich-based bank recently reported that it is closing in on winning the mandate of one out of every three new hedge fund. It is the largest bank in Switzerland, and is expected to continue expanding its business with funds. However, in July, UBS reported a 58 percent decline in its second-quarter profit. That was primarily due to a loss related to the Facebook IPO.

To avoid possible conflicts of interest, the UBS Global Asset Management Code of Ethics specifies specific requirements for Authorized Brokers. Covered persons must obtain the required approvals prior to investing, which must be in writing. The Code of Ethics states that an oral discussion does not constitute written approval from the Compliance Department.

Comments are closed.