Prime your broker

Apart from the relationship with investors, a hedge fund manager's relationship with the fund's prime broker is perhaps the most crucial factor of the portfolio's well being.

The importance to a hedge fund business of healthy dealings with a prime broker exists not only at the level of borrowing stock or other instruments to build a short book to withstand or profit from market shocks.

This use of stock loan is the main reason a hedge fund may need a prime broker and it is worth asking all pri