Australian – IN another sign of the swift evolution of the nation’s hedge fund market, Morgan Stanley is launching an Australian hedge fund services business.
The business of settling hedge fund trades and providing financing to hedge funds, known as prime brokerage, may sound dull but it has grown to be one of Wall Street’s largest money makers as the global hedge fund industry has exploded to $1.2 trillion in size.
Australia’s hedge fund market is a fairly small part of the overall pie. It had just $22 billion under management in Australian-focused hedge funds in March, according to Australian government agency Axiss.
But LCA, which compiled much of the data for that study, projects the industry could grow to $220 billion by 2015.
Morgan Stanley has never aimed to be all things to all people in Australia. Its profile locally is far lower than it is globally. But prime brokerage is an area of particular expertise for Morgan Stanley.
Along with Goldman Sachs, it dominates the global industry. Moreover, Morgan Stanley already has a strong position in the local market despite servicing clients here from Hong Kong and Tokyo.
LCA ranks Morgan Stanley as the top Australian prime brokerage, servicing 35 per cent of Australia’s hedge fund assets.
The business of settling hedge fund trades and providing financing to hedge funds, known as prime brokerage, may sound dull but it has grown to be one of Wall Street’s largest money makers as the global hedge fund industry has exploded to $1.2 trillion in size.
Australia’s hedge fund market is a fairly small part of the overall pie. It had just $22 billion under management in Australian-focused hedge funds in March, according to Australian government agency Axiss.
But LCA, which compiled much of the data for that study, projects the industry could grow to $220 billion by 2015.
Morgan Stanley has never aimed to be all things to all people in Australia. Its profile locally is far lower than it is globally. But prime brokerage is an area of particular expertise for Morgan Stanley.
Along with Goldman Sachs, it dominates the global industry. Moreover, Morgan Stanley already has a strong position in the local market despite servicing clients here from Hong Kong and Tokyo.
LCA ranks Morgan Stanley as the top Australian prime brokerage, servicing 35 per cent of Australia’s hedge fund assets.
