How banks are adapting to all-powerful pod funds

Hedge
funds
are
tricky
customers
for
banks.
They
can
trade
complex
instruments
in
big
size,
with
little
notice.
They
put
multiple
banks
in
competition
at
once,
making
it
hard
for
dealers
to
profit
from
trade
flow.

And
the
growth
of
multi-manager
funds,
the
likes
of
Citadel,
Millennium,
Point72
and
Balyasny,
has
swelled
the
ranks
of
portfolio
managers
on
the
buy
side,
bringing
new
challenges
for
banks.

First,
how
to
service
more
clients
without
the
extra
expense
of
hiring
new
staff.
Second,
how
to