Fort Lee, N.J.-based Sloan Securities Corp. is beefing up its marketing efforts in order to reach out to emerging hedge fund managers, a segment of the asset management universe that it believes is not being served by the large financial institutions.
As part of its marketing effort, the firm has launched a SloanPrime Web site in conjunction with the re-branding of its corporate site.
“Up to now we’ve have had no marketing effort because the business sold itself through unsolicited referrals,” said Ralph Lamberti, managing director of prime brokerage services. “We started in prime brokerage about four years ago, and inline with the trend of funds moving to mini-primes to diversify their custodial risks, we’ve actually benefited from the crisis of 2008. [In the past year] we’ve converted several funds from larger name prime brokerages.”
The firm currently counts 100 emerging hedge funds—those managing anywhere from a few million to $100 million—as clients.
Lamberti said the flight of smaller hedge funds to mini-prime brokers will continue as the industry-wide shakeout continues.
“The trend to multi-primes will hold and continue with the advantages of diversifying custodial risks in this environment. The advantages of going to a firm that is multi-primed are that you can get consolidated reporting and back office interfaces,” he said.
Sloan Securities was established in 1987 and provides advanced brokerage and corporate finance services to domestic and international clients.