Results from Global Custodian Prime Brokerage Survey

The results are out for this year’s Global Custodian Prime Brokerage Survey, and out of the 24 firms Gar Wood was ranked:

  • 5th in consulting
  • 7th in operations
  • 14th in total points

Moreover, Gar Wood was just a few survey responses short, but had the points to earn a “Best in Class” in four out of ten categories for securities lending, operations, consulting and in total points.

Robert S Jersey, President and CEO of Gar Wood Securities, LLC said, “We at Gar Wood Securities, LLC are all very proud to be included in Global Custodian’s annual prime brokerage survey for the second year in a row. There are approximately 35 “mini prime brokers” operating in one fashion or another, and Gar Wood was one of only four mini prime brokers to make this year’s survey”.

Global Custodian wrote: Gar Wood, which was founded as recently as 2003, follows its impressive debut with strong scores from a larger group of respondents. The client base of the agency brokerage has nearly doubled in the interim, as hedge funds have fled credit, counterparty and financing concerns raised by the largest providers. Almost all of the Gar Wood clients are managing relatively small amounts, and it is the unweighted averages that show the firm to best effect. They end up between “very good” and “excellent” in all but three service areas. The exceptions include the linked areas of technology and reporting, though Gar Wood has recently invested in a new web-based portfolio reporting system. The survey does not measure the important execution capabilities of the firm, but one client would like “an electronic trading platform for non-US markets.” Operations, where clients can clear and custody through any of Fortis, J.P. Morgan and Penson, remain a high scoring area. “Ability to clear and custody in most markets,” as a client puts it. “Efficient corporate actions services.”  A second client says the firm—which now has operations in Dallas and New York as well as Chicago—is “accessible and responsive at resolving issues. Have been very few issues operationally. Easy to short stocks.”  Despite the nature of its client base, Gar Wood does not yet offer cap intro (“Cap intro has not materialized yet,” says a client), but it is working with third party marketers.  (Note: formatting has been made for visual appeal).

“We are confident that our new web based reporting package will provide our clients with all of the bells and whistles that they are looking for in a prime broker. We are getting very positive feed back from our clients and prospect” said Dennis Gerecke, Executive Vice President and COO.

Attached are the summary results for all 24 firms that were included this year’s survey. The tables reflect the results for only the self clearing prime brokers. All “Mini or Boutique” prime brokers have been excluded.

Thank you to our clients for your business, support and time in completing the survey. We know your time is valuable. We are now offering a new on-line reporting package to address aggressively the areas where we did not excel. Please contact your client service representative to arrange a demo.

Best Regards,

Bob Jersey

President and CEO

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