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

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) Prime Broker Counterparty Risk: Hedge Fund Guide
(ii) Citigroup is said to face 180 million loss on loan to Asia fund loan
(iii) The collapse of Archegos Capital Management
(iv) ESMA TRV Risk Analysis
(v) The prime broker-hedge fund nexus: recent evolution and implications for bank risks
(vi) Report on the Thematic Review of Prime Services and Related Equity Derivatives Activities in Hong Kong

*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