Growth in prime brokerage continues strong

For the fireworks we've witnessed in the hedge fund industry, the fact is that the industry is thriving. The big institutions are not likely to shut off the cash spigots any time soon. And there's a high level of entrepreneurial activity still going on. Returns have held up. For the prime brokerage industry, this is all good news. So we should not be surprised by the Tabb Group report that says brokers will rake in more than $11 billion revenues from hedge funds in 2008. That's a 15 percent increase over 2006. The report predicts prime brokerage from "financing, stock loan, custody and other prime services will surpass other institutional business lines by 2010, in particular the cash equity."  Of course, as FINalternatives notes, the competition will be fierce. 

For more: 
- here's the article from FINalternatives

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