Investor Scrutiny

Investors are becoming increasingly sophisticated in their pre-investment research into potential managers. It is now common for large investors to ask which prime brokers hedge fund managers use. 'Pension funds, for example, have now begun to appreciate how important prime brokers are to the success of many hedge fund strategies,' says Jim Rowen, New York-based co-head of global equity prime services at Deutsche Bank. He argues that a hedge fund using a prime broker with a good credit rating (