Band of brothers

Some companies are assessing the need to share pooled information to manage clients more effectively, but the idea is unlikely to be welcomed by hedge funds

Prime brokers face an information conundrum. To attract hedge fund business, they pledge to uphold the highest standards of client confidentiality. But hedge funds spread business over a number of brokers anyway, effectively keeping their margining limits hidden. So, how can prime brokers get the information they need to risk-manage the relationships with these clients.

A prime broker may try to extrapolate a client's strategy from the business it sees, but there is no way to tell if the results