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Cowen Prime Services
Weighted
average
scores
2016
2017
2018
“I
5.85
5.89
6.11
2016
5.85
2017
5.89
2018
6.11
Cowen has reached that Nirvana where even a price increase
think of Cowen Prime as a trusted partner,” writes a client.
contains
nothing but the prospect of an even higher standard of
Comments and scores suggest that, in the year that has Respondent
profile
service. “The price of services went up, but it did so in order to
passed since it completed the acquisition of Convergex, Cowen
fund on clients that desire to be provided with better services,”
has not only transitioned clients but completed its own trans- Small focus
95%
concludes one happy respondent.
formation into a larger business. Weighted
The firm has benefited from managers
4%
2%
the exodus of clients from major average
firms, welcoming emerging Medium-
scores
2%
sized fund
managers and start-ups, but it is a different type of prime broker
2016
5.85
2016
2017
2018
managers
from its bank-owned competitors.
As clients of 5.89
an introducing
2017
5.85
5.89
6.11
Large
fund
4%
broker, managers have BNY Mellon,
Sachs or BAML managers
2018 Goldman 6.11
PROFILE OF RESPONDENTS
as their counterparty (there are similar relationships in futures Americas
93%
95%
clearing). Cowen reckons this combination
reassures investors Europe and
Respondent profile
5%
without costing managers access to a nimble, agency-only bro- Middle East
By size
By location
Small fund
kerage that can, nevertheless, provide
a full service,
including Asia
2%
95%
electronic trading, non-synthetic managers
financing, operational support,
2%
4%
Medium-
2% scores by service area
5%
reconciliation, and reporting. It also
enables the firm to offer Weighted average
2%
sized fund
Americas
Large
clients the stock borrowing services of its clearers as well as its
managers
Weighted
+/- the
Europe and
own securities lending desk. “Every
short sale borrow engage-
Medium
Large fund
Service area
average
global
4%
Middle East
ment was entirely under my control,”
enthuses
a
client.
But
Small
managers
score
average
Asia
where Cowen really shines is in Americas
trading, execution
and
oper-
93%
Capital
95%
93%
ations. Its Outsourced Trading group,
Europe an
and agency-only service introduction
5.54
3.3%
5%
aimed at the buy-side, is playing Middle
so well
with investors looking s
East
Asia
2%
for institutional-quality infrastructure
and managers
facing fee Client
6.45
7.3%
compression, that it has lifted the assets under management the service
2%
Weighted
average
scores
by
service
area
5%
Consulting
6.45
10.2%
firm services on a daily basis to $30 billion. “The trade execution
Weighted average scores
6.39
7.1%
is precise and meticulous, and I am very satisfied,” says a client. Operations
Weighted
+/- the Technology
2016
2018
5.62
0.3% 2017
In operations, where Cowen has Service
always
sought
to
distinguish
area
average
global
5.89
6.11
itself, client confidence is equally high. “Operational
staff
that Product 5.85
score
average
5.44
-0.4%
I have interacted with are very professional
and experienced development
Capital
93%
and they know what they are doing,”
says a respondent.
“They
5.54
introduction
3.3%
Risk
have never made a single mistake
s in the time I have worked
Weighted average
service area
5.85 scores by
5.1%
Client
with them and when there are problem
issues, 6.45
they are quick
to management
7.3%
Service
area
Weighted average +/- the global
service
resolve them.”
Asset safety
6.21
8.3%
score
average
6.45
Assessments of the technology, Consulting
where Cowen
relies on 10.2%
vendor Sales and
6.52
6.3%
Capital
introductions
5.54
3.3%
Operations
6.39
7.1%
systems for execution management and portfolio accounting, marketing
Technology
5.62
0.3%
Client service
6.45
7.3%
is not as enthusiastic. “Technology
and reporting
needs to
be
improved,” notes a client. That clients
Product expect that to happen
Consulting
6.45
10.2%
5.44
-0.4%
development
(“They accept constructive critique
and new ideas in order
Operations
6.39
7.1%
to excel at what they do”) helps explain the product develop-
Technology
5.62
0.3%
Risk
ment score. In the last year, Cowen has added 5.85
portfolio and
5.1%
management
risk analytics and fully paid-for lending
to its portfolio. Swaps
Product development
5.44
-0.4%
are promised for the US next year.
In safety
the tricky
field of capital
Asset
6.21
8.3%
Risk management
5.85
5.1%
Sales and its best score. But the firm
introductions, Cowen does not collect
6.52
6.3%
Asset safety
6.21
8.3%
boasts it thinks like an allocator marketing
rather than a marketer, and the
Sales
and
marketing
6.52
6.3%
fact it can police its managers gives investors assurance. “Cow-
en’s cap intro team has done a great job for us,” says a client.
Trading and execution
6.09
4.0%
“We find them to be very proactive, helpful and communicative.”
Delta 1, swaps and financing
6.45
12.8%
There are accolades like that aplenty, including in consulting,
Stock borrowing and lending
6.18
3.6%
where a start-up says Cowen was “very helpful” in choosing
Foreign
exchange
prime
brokerage
5.89
3.9%
service providers. “Great group of guys that I interact with at
Cowen,” writes a client. “Great firm, wish them strong growth
Fixed income
6.48
12.2%
and success.” Another client says, “All client-facing employees
OTC clearing
N/A
N/A
seem very knowledgeable, so they respond correctly and in a
Listed derivatives
6.04
2.6%
very timely manner to all queries directed to them. They always
make you feel like they really value your business.” In fact,
Total
6.11
5.3%
80
Global Custodian
The Hedge Fund Annual 2018