Prime Brokerage & Custodial Services

To start a hedge fund the manager needs to first establish a prime brokerage account.  Traditionally, Hedge Fund Prime Brokers consist of a few major investment banks and some smaller mini-prime brokers. The smaller mini-prime brokers typically cater to hedge fund managers with assets of $250,000,000 or less.  Prime Brokers offer traditional institutional brokerage and a centralized securities clearing facility to hedge funds, this allows the hedge fund’s collateral requirements to be netted across all deals handled by the Prime Broker.  Prime Brokerage services can include global custody, securities lending/stock loan, trade execution, trade clearing and settlement, trade-away, portfolio financing, portfolio margining, electronic trading systems, order management systems, risk management and portfolio management and reporting. Some Prime Brokers will provide capital introduction and office space as well.  Regarding the mini-prime brokers, a few of them self-clear their trading business and act as the custodian for their hedge fund clients.  However, most mini-primes maintain a fully-disclosed custody and clearing relationship with one or more of the larger global custodians, thereby affording their hedge fund clients with a choice of custodians.

*StoneGate is not a broker-dealer. Each PrimeOne Account is customized for every client and may or may not include all services listed above. Each PrimeOne Account requires approval by StoneGate Capital Partners at its sole and absolute discretion. Any and all securities and/or brokerage services are offered through and provided by a StoneGate-designated, FINRA registered broker-dealer. Any and all legal services are offered through and provided by a StoneGate-designated, state Bar-member attorney and/or law firm.