Man Group Warns Archegos Collapse May Winnow Prime Brokers
- Fallout may drive some banks to abandon hedge fund services
- Clients could see higher prices, more risk as a result
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Man Group Plc is concerned that the collapse of Archegos Capital Management may drive some banks to abandon the business of servicing hedge funds, handing the biggest Wall Street firms even more power over their trading clients.
The implosion last month of Bill Hwang’s family office is almost sure to winnow the ranks of dealers in prime brokerage and clearing, Sandy Rattray, chief investment officer at the world’s largest publicly listed hedge fund manager, said Tuesday in an interview on Bloomberg Television.