Overview

This is Module 7 of the Henley Executive Hedge Fund Program (HEHFP). It explain what a prime broker does, what a hedge fund should look for from a prime broker, and what they will be asked for in return. Concepts introduced include clearing, custody and asset servicing, stock lending, margin, collateral and leverage.

This module is a 3-hour (approx. study time) course and is eligible for 1.5 SFC CPT/PWMA OPT hours.

Check out the other modules in the Program:

• Module 1: Overview of the Hedge Funds Industry
• Module 2: Structuring & Setup
• Module 3: Capital Raising & Investor Relations
• Module 4: Portfolio Management
• Module 5: Portfolio Risk Management
• Module 6: Markets and Trading
• Module 8: Business Management & Fund Administration
• Module 9: Operations and Technology
• Module 10: Operational Risk Management & Operational Due Diligence
• Module 11: Legal
• Module 12: Ethics (2023)
• Module 13: Compliance
• Module 14: Fund Governance
• Module 11: Legal
• Module 12: Ethics
• Module 13: Compliance
• Module 14: Fund Governance
• Module 15: Tax, Audit & Accounting
• Module 16: Human Resources
• Module 17: Pitchbook Formation

Objective

By the end of this module, you will be able to:
- Explain the role of a prime broker and its relation with hedge fund
- Describe various concepts related to prime brokerage
- List the considerations in selecting prime broker and monitoring
- Know the the future of prime brokerage

Content

Part 1 - Pre-reading materials
(i) What is Prime Brokerage
(ii) Post-Crisis: Hedge Funds, Custodial Risk And Prime Brokers
(iii) Prime Brokerage survey: Goldman Sachs remains top, but lead narrows
(iv) Industrial Evolution: How new trends are reshaping the prime brokerage offering

Part 2 - Presentation Slides of the eCourse

Part 3 - Prime Brokerage Services eCourse*
(i) Introduction
(ii) Section 1: What is a Prime Broker
(iii) Section 2: Financing & Margin
(iv) Section 3: Legal Agreements
(v) Section 4: Selection and Monitoring
(vi) Section 5: The Future of Prime Brokerage
(vii) Section 6: Concluding Remarks

Part 4 - Quiz*
The quiz consists of 15 questions where learners have 3 attempts to achieve at least 80% with correct answers as a pass.

Part 5 - Post-reading materials
(i) Citigroup is said to face 180 million loss on loan to Asia fund loan
(ii) Report on the Thematic Review of Prime Services

*mandatory parts to complete

Who should attend

(1) Hedge Fund professionals seeking to enhance their knowledge
(2) Individuals looking to start a Hedge Fund
(3) Service providers e.g., Banking, Risk, Compliance and IT professionals, Lawyers, Fund Administrators