Friday, 21 October 2016
Last updated 51 min ago
Oct 22 2008 | 11:17am ET
Multiple prime brokers are all the rage, and Philippe Jabre is not going to be left behind.
The former GLG Partners star trader’s Jabre Capital has signed up its fourth prime broker, Citigroup, according to a filing with the Irish Stock Exchange. The Geneva-based hedge fund firm had already begun prime broking relationships with Merrill Lynch, Morgan Stanley and UBS.
Multiple prime brokerages are increasingly seen as a key risk-management tool for hedge funds, following the collapse of Bear Stearns and Lehman Brothers—both of which had substantial prime brokerage operations—and the credit freeze afflicting the market. In particular, firms with assets at Lehman’s London prime brokerage have found themselves without access to that capital, which has been frozen pending the firm’s bankruptcy proceedings.
Jabre founded the eponymous hedge fund in February 2007 after leaving GLG.