What do you see as the key challenge facing prime brokers at the present time?
As the total asset management industry is developing towards capturing alpha, the new type of products (that is, 130/30 funds) is a challenge.
The classic prime broking services might not be the way forward in servicing these types of client.
Another debate ongoing in the hedge fund industry is the amount of beta in the hedge fund performance. As new hedge fund clones develop (hedge fund beta), the pressure on hedge