Hedge Funds Attorneys Provide Insights on Prime Broker Risk in a Three-Part series published in The Hedge Fund Law Report

Hedge funds partner and practice group co-leader, Leigh Fraser (Boston), hedge funds counsels Molly Moore (Washington, D.C.) and Brynn Rail (New York) were recently featured in a three-part series published by The Hedge Fund Law Report, entitled “How Fund Managers Can Mitigate Prime Broker Risk.” The first article, published on Dec. 1, detailed ways managers can evaluate the creditworthiness of brokers and to weigh the relative costs and benefits of the various prime brokerage arrangements available in the industry. The second article, published on Dec. 8, described how managers can mitigate risk by utilizing multiple prime brokers or engaging a third-party custodian to hold their excess cash and securities. The final article in the series, published on Dec. 15, outlines various protections managers can incorporate into their prime brokerage agreements to monitor and preserve control of their assets, as well as limit their exposure to sub-custodian risk in foreign jurisdictions.