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Prime Broker


whistlerbumps
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Does anyone have a recommendation of a good prime broker for smaller funds that has good international coverage?

 

Looking for someone who can handle Europe (Italy, Norway, Spain Portugal etc) and Asia (Japan, HK, Korea etc).  Also needs to be able to handle some of the secondary exchanges (ex AIM in the UK).  Any help would be greatly appreciated.

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What does prime broker mean?

 

a prime broker is basically a more advanced version of a regular broker. while retail people use fidelity or td ameritrade, prop firms and hedge funds use goldman sachs, wedbush, or interactive brokers.

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In my opinion, most firms/people overweight the importance of a prime broker.  Unless you are interested in capital raising/introduction, derivatives/leverage, name recognition, etc...There is no reason to go out and find a prime broker. 

 

In my opinion, Schwab, Interactive Broker, or many other "cheap" firms will provide everything you need to manage an investment partnership or RIA.

 

However, this is just my opinion, as I said at the beginning.

 

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A related question, anyone has a recommendation for portfolio management software, that can help to reconcile, calculate returns, aggregate client accounts and generating client reports? Basically I am trying to find a cheaper version of InData IMS and Advent. thanks

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A related question, anyone has a recommendation for portfolio management software, that can help to reconcile, calculate returns, aggregate client accounts and generating client reports? Basically I am trying to find a cheaper version of InData IMS and Advent. thanks

 

Ezesoft's Tradar PMS should be more than adequate for your needs.

Advent is the rolls royce of PMS providers, industry standard, used by all top Fund Admins, you will never outgrow this system but they are prohibitively expensive for the average start-up fund and we question how they justify some of their setup costs

cheers

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Many thanks, will check out. Have you or anyone looked at Schwab's Portfolio Center?

 

 

 

Ezesoft's Tradar PMS should be more than adequate for your needs.

Advent is the rolls royce of PMS providers, industry standard, used by all top Fund Admins, you will never outgrow this system but they are prohibitively expensive for the average start-up fund and we question how they justify some of their setup costs

cheers

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Thanks for the thoughts.  Jefferies is certainly an option. I generally agree about people overrating the value of the prime, however for my fund specifically, I need someone with good international clearing abilities.  IB is very good but has some wholes in some overseas markets. 

 

Used to be that the solution was the mini-primes (Merlin, BTIG) where the assets would be custodied by JPM/GS etc... however with JPM shutting down that business it seems like there are far fewer options.

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Thanks for the thoughts.  Jefferies is certainly an option. I generally agree about people overrating the value of the prime, however for my fund specifically, I need someone with good international clearing abilities.  IB is very good but has some wholes in some overseas markets. 

 

Used to be that the solution was the mini-primes (Merlin, BTIG) where the assets would be custodied by JPM/GS etc... however with JPM shutting down that business it seems like there are far fewer options.

 

Could you tell me what concerns you have with IB for hedge fund trading?

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His original post mentioned Korea, which IB does not support...

 

Hmm.. Correct. Also Greece is not supported.

Do you think Fidelity is ok for a hedge fund? I know fairholme fund uses Fidelity.

 

I heard IB has an automated reporting sheets that makes hedge fund reporting to clients super easy. Not sure if it is true and not sure if Fidelity has that same thing.

 

Why use Prime brokers? They will be much more expensive than discount brokers like Fidelity and IB. What kind of advantage are you expecting from them?

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A related question, anyone has a recommendation for portfolio management software, that can help to reconcile, calculate returns, aggregate client accounts and generating client reports? Basically I am trying to find a cheaper version of InData IMS and Advent. thanks

 

Ezesoft's Tradar PMS should be more than adequate for your needs.

Advent is the rolls royce of PMS providers, industry standard, used by all top Fund Admins, you will never outgrow this system but they are prohibitively expensive for the average start-up fund and we question how they justify some of their setup costs

cheers

 

^^^What is the difference in prices between the two? How much roughly did you pay for each?

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His original post mentioned Korea, which IB does not support...

 

Hmm.. Correct. Also Greece is not supported.

Do you think Fidelity is ok for a hedge fund? I know fairholme fund uses Fidelity.

 

I heard IB has an automated reporting sheets that makes hedge fund reporting to clients super easy. Not sure if it is true and not sure if Fidelity has that same thing.

 

Why use Prime brokers? They will be much more expensive than discount brokers like Fidelity and IB. What kind of advantage are you expecting from them?

 

IB has great functionality. I think the major reason is once you get into raising money many people will simply not accept IB. They want to see a big name custodian (Goldman, Pershing, etc), period. If you have an investor base of individuals who don't mind it's the cheapest and possibly best route, though.

 

 

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