How many banks does a typical 2-5bln+ fund trade with?

So I was wondering how many banks a typical 2-5 billion dollar fund might be open with. From my experience it seems like a lot of these funds are only open with say 2-3 max banks which means they have to use other means to get their research.

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Yea, I mean they are on the sell-side, throwing out a couple reports to new (or even established) hedge fund managers could potentially land them an account in the future.

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then some banks will be totally tight lipped if you are not open and actively paying them.

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Sure, but it really comes down to a combination of cold-call/cold-email numbers, analysts' moods, and blind luck.

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

Depends on asset class. Liquid/undifferentiated products, it might make sense to stick with a few banks, probably largely the ones who serve as your prime brokers. In the credit asset classes the fund I work for invests in (structured products, illiquid corporate and distressed debt), we trade with pretty much every major bank and many mid-market banks. In CLOs for example each bank has its inventory and puts out its own BWICs, and a lot of corporate debt trades most often through the agent bank/underwriter.

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Really? See I would have figured even in the illiquid products it still would have been just a few banks then of course using the inter dealers.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.
 
trade4sizeReally? See I would have figured even in the illiquid products it still would have been just a few banks then of course using the inter dealers.

Yup, pretty much every bank under the sun. From your BBs to your random national banks (for us at least, also in debt).

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