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Many of the hedge fund managers and commodity trading advisers expressed dissatisfaction with their prime brokers’ inability to offer technology solutions to help them more effectively manage their risk grow their business, according to a recent survey conducted by I.A. Englander Managed Accounts & Prime Services (MA&PS).
In a breakdown of the type of services that attracted the hedge funds to their prime broker, the survey found that the technology/reporting function was the leading service with 35 percent, followed by operations coverage/competency with 30 percent.
More than half of those surveyed (55 percent) said their prime broker doesn’t offer the appropriate technology to help raise capital for their firms, compared with 30 percent of the firms who said their prime broker provided this service.
Brett Langbert, managing director of sales and distribution, said: "The results of the survey solidified our holistic belief and thus the catalyst for launching MA&PS. Allocators of capital are investing in emerging hedge fund managers and CTAs via managed accounts. The manager responses exhibited that managed accounts present a complex workflow that requires infrastructure solutions that should be addressed by their prime brokers."
"IAE MA&PS' business model provides a solution to the managed account equation—our offering is a unique platform in the marketplace that provides a real value add via technology, operations, infrastructure and identifying means in which allocators and managers can seek each other out. This model does not increase overhead but rather streamlines costs for both allocators and managers."
