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Jerryz, Never change your style of trading based on the type of money you are trying to attract. If the risk-adjusted returns are there, you will eventually get plenty of money. What's the hurry? :) There are so many potential distractions in this industry, and it is easy to get...

BlueHorseshoe, Interesting. I can see that being the case in Asia. But, I would like to draw a distinction between the investment bank acting as a broker and the prime brokerage subsidiary. A hedge fund could always trade through the investment bank without using the prime brokerage...

jerryz, I ran a hedge fund with AUM in the low eight figures, and I never found it necessary to talk to a prime broker. Some prime brokers are more selective than others. Last I heard, Goldman Sachs required at least $50 million. A firm such as Furman Selz takes on much smaller hedge...

Yes, the investment banks do try to sell a few other services that they provide, such as financing, the ability to borrow stock to short, and consolidated brokerage statements. But I think these are pretty much the same at all investment banks. The best way for them to differentiate...

Prudent, The reason why a hedge fund with $1 million under management would want to use a prime broker is because the prime broker can get you clients. This is the main reason why hedge funds use prime brokers. A firm such as Bear Stearns or Goldman will sell itself by saying that it can...

The crazy thing is that it probably wouldn't take more than a 100 lot market order to do that.

Nice meeting everyone. See you guys next Friday.