Goldman Cuts Japanese Prime Brokerage, Boosts Hong Kong

Jul 12 2012 | 10:22am ET

Japan's biggest prime broker is getting smaller—by choice.

Goldman Sachs is cutting back on its prime brokerage operations in Japan, punctuated by the planned exit of the unit's head. Toru Okabe will leave the bank by the end of the month as it shifts some of its staff and operations to Hong Kong.

"The industry as a whole is operating increasingly on a Pan-Asia basis and we are relocating our resources to better meet with clients' needs," a spokeswoman for Goldman Sachs Japan, Hiroko Matsumoto, told Reuters. "We are putting more resources into the business across the region and our commitment to our clients, including those in Japan, remains unchanged."

Goldman moved its Japanese stock lending desk from Tokyo to Hong Kong in May, merging it with its Asia stock lending operation. The bank also plans to move its annual Asian hedge fund conference from Tokyo to Singapore this year.

Goldman is Japan's largest prime broker with US$2.7 billion in assets, according to Asia hedge. But the Japanese hedge fund industry is in a slump and has struggled to attract new capital as other Asian hedge funds have done; Japanese funds manage only about one-third of the amount they did in 2006.

Okabe is a 12-year veteran of Goldman's Japan prime brokerage. He joined the bank in 1997 from Nomura Securities.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note