Do you operate a Hedge Fund at an online broker and were told to leave?

Do you operate a Hedge Fund at an online broker and were told to leave and take your business to another BD? If this will affect your fund and you have been notified, please contact me directly to discuss our services. We offer both REG-T and PM Accounts and support hedge funds that focus on US-Listed Equites and Options.

Bob

 

Why might someone be told to leave? Asking so that I know "the rules".

 

I will not name the online broker, but the message to the clients said they are closing some pooled accounts. Sounds like they no longer wish to support hedge funds, but I can't speak for them.

 

Hi Robert. Is this common?

 

Common, no.

 

It sounds like a broker who offered special deals to hedge funds. They performed a cost analysis and realized that the profits, risk and the time to service these hedge funds no longer met their desired bottom line.

 

Not enough AUM, or not generating enough fees.