Kurt Baker, head of Morgan Stanley’s prime brokerage arm in Asia, has left the company. Morgan Stanley chief executive John Mack announced in October that the prime brokerage business would be reassessed. Hedge funds’ sentiments towards prime brokers in the current climate were expressed in Clontarf Capital’s November newsletter. "For many hedge funds, particularly those with assets below $300 million, it is clear that while they may have thought they had a loving relationship with their prime broker, they were, in effect, being used all along," says the newsletter. "The party is firmly over for many funds, and the prime broker is one more adversary to deal with in what feels like a multi-pronged attack (from markets, investors and regulators, as well as other funds)."
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