BNY ConvergEx Aims To Attract Smaller Hedge Funds

- 11/25/2009    To comment on this article click here (0)

Read more on (click to search): [NorthPoint Trading Partners] [ BNY ConvergEx] [ boutique prime brokerage] [ Doug Nelson] [ Tom Gavin] 

--Corrie Driebusch
 

BNY ConvergEx aims go after smaller hedge funds on the heels of acquiring mini-prime NorthPoint Trading Partners. The firm has been looking at the boutique prime area for some time, but was waiting to find a well-established partner, according to Tom Gavin, executive managing director of ConvergEx. Gavin said the goal of teaming with NorthPoint is to be well-positioned for increasing market share in both technology and prime brokerage as fund launches get increasingly smaller. The boutique prime brokerage has a little more than 200 firms on its platform, according to CEO Doug Nelson.

 

Gavin said his firm’s sales departments often have clients and prospective clients asking for recommendations for introducing prime brokers. Rather than hiring one person and trying to build a platform from scratch, Gavin said ConvergEx jumped at the opportunity to bring on NorthPoint, which he said would create a “revenue synergy.” Since hedge funds vary in size and trading style, NorthPoint will now be able to give its clients the option of choosing from a wide array of technologies and services from the ConvergEx platform, such as options execution capabilities via LiquidPoint or the Eze OMS. ConvergEx also offers independent research and commission management service.

 

NorthPoint will add Pershing as a clearing firm in the future, providing another option outside of Goldman Sachs, JPMorgan and Jefferies.

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