GREENWICH, Conn. - Interactive Brokers (NASDAQ:IBKR) Group, Inc. (NASDAQ:IBKR), a global electronic brokerage firm, has announced the launch of its High Touch Prime Brokerage and Global Outsourced Trading services. These offerings are designed to provide personalized support to select U.S. hedge funds, complementing the firm's automated and cost-effective trading platform.
The new High Touch Prime Brokerage service aims to assist hedge funds by assigning a dedicated Relationship Manager. This manager will act as a single point of contact to address the fund's needs, offering a deeper understanding of the client's trading strategy and business requirements. The Relationship Manager's role includes navigating the firm on behalf of the fund, resolving issues, and facilitating special requests.
Interactive Brokers has also introduced access to Subject Matter Experts in various operational areas such as Risk, Compliance, Securities Lending, and Tax. This access is intended to help hedge funds manage their businesses more efficiently.
Another component of the enhanced services is the IBKR Outsourced Trading desks, now available in Europe and Asia, allowing portfolio managers to execute their trading strategies around the clock with the assistance of experienced IBKR traders. This service covers a range of instruments, including domestic and international stocks, options, and bonds.
The company highlights its strong capital position and automated risk controls as key factors in protecting both the firm and its hedge fund clients. Interactive Brokers has been recognized by Preqin's 2023 Service Providers Report as the top prime broker for hedge funds with assets under management (AUM) up to USD 50 million and the fifth largest prime broker by the number of hedge fund clients.
Interactive Brokers' clients benefit from global investment opportunities across multiple asset classes without custody fees or AUM minimums, competitive margin rates, and the ability to earn interest on cash balances. Clients also have access to advanced trading platforms, over 100 order types, and algorithmic solutions.
This announcement is based on a press release statement from Interactive Brokers Group, Inc.
InvestingPro Insights
As Interactive Brokers Group, Inc. (NASDAQ:IBKR) expands its service offerings with High Touch Prime Brokerage and Global Outsourced Trading, the company's financial health and market performance provide a backdrop for understanding its competitive position. According to InvestingPro data, Interactive Brokers boasts a robust market capitalization of $47.22 billion, underscoring its significant presence in the industry.
The firm's commitment to maintaining dividend payments for 15 consecutive years, as highlighted in one of the InvestingPro Tips, aligns with its new services aimed at providing stability and support to hedge fund clients. Additionally, the data shows a substantial revenue growth of 39.56% over the last twelve months as of Q1 2023, indicating the company's strong financial performance and potential to invest in new client services.
InvestingPro Tips also reveal that Interactive Brokers is trading at a low P/E ratio relative to near-term earnings growth, with a P/E ratio of 19.82 and a PEG ratio of 0.4 as of Q1 2023. This suggests that the company's stock may be attractively priced given its earnings trajectory. Moreover, with analysts predicting profitability this year and a strong return over the last three months of 30.32%, the company's stock performance reflects confidence in its business model and strategic initiatives.
For those interested in further insights, there are 10 additional InvestingPro Tips available for Interactive Brokers, which can be found on the InvestingPro platform. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to in-depth analysis and data that can inform investment decisions.
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