Prime brokers present their case
Some prime brokers agree with a lot of what Tony Stocks wrote last month. In the main, prime brokers and hedge funds are inseparable and there are lots of reasons why a hedge fund would want to use one, two, or even three prime brokers. Single or exclusive prime broker relationships sometimes simply flatter to deceive, eroding rather than enhancing returns.
It is certainly a good thing to spread the business around, demand the most competitive stock-loan fees, dilute the counter-party risk
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