Friday, 4 September 2015
Last updated 5 hours ago
Jul 1 2011 | 12:13pm ET
Credit Suisse is getting picky about the start-up hedge funds it takes on as prime brokerage clients.
The bank is insisting on more than a strong investment track record—it wants new managers to show an understanding of infrastructure and some standard business sense, hoping to build relationships with firms that have long-term prospects for success. And that means Credit Suisse is taking on only half as many startups this year than it did in the past.
Just 10% of nascent hedge funds that have sought Credit Suisse's services have been graced with them, Hedge Fund Alert reports. In the past, the bank has taken on about 20% of such firms, prime brokerage chief Phil Vasan told some clients on a conference call last week.
Vasan told those clients that greater selectivity will lead to better capital introduction services. He also cited calls from investors, saying that "in a market flush with launches, investors tell us they're challenged to sort through them all and find what they're looking for."
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…