Hedge funds and their prime broker analysts

• Main Authors: CHUNG, Sung Gon, KULCHANIA, Manoj, TEO, Melvyn
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: Hedge funds; Prime brokers; Analysts; Conflicts of interest; Finance and Financial Management; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6678; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7677/viewcontent/Hedge_funds_and_their_prime_broker_analysts_sv.pdf
• Institution: Singapore Management University

Are sell-side analysts reluctant to go against the investment views of their hedge funds when these hedge funds are their prime brokerage clients? We show that prime broker analysts tend to upgrade stocks recently bought by their clients. For stocks with upgraded recommendations, post-announcement c...