Big get bigger in prime brokerage

July 7, 2008 | By Jim Kim

We noted recently that if you want to make it in prime brokerage--and you're not Goldman Sachs or Morgan Stanley--you need a niche. The thinking goes that more hedge funds were moving toward multiple primes, allowing room for smaller firms to pick off some assets. But with the implosion of Bear Stearns, which was once a top prime player, there has been something of a flight to quality, notes MarketWatch. Goldman's Securities Services business racked up a record $985 million in revenue in the second quarter, up 36 percent from a year earlier. Morgan Stanley also fared well. This may something of an emotional response. Hedge funds needs are fairly diverse, and they still seem more than willing to spread assets around if they see value.

For more:
- here's the MarketWatch article