Systems and methods for providing financial services

Abstract

A new method and system for providing financial services is provided. These methods and systems can include providing banking and investment services to hedge fund money managers and other customers without the assistance or need for a prime broker. While employing the present invention a money manager may receive prime brokerage services from a bank or other financial service while at the same time be able to pursue investment opportunities with this bank or financial institution and other banks, institutions, and brokerages. The prime brokerage services that a money manger may receive can include accounting services, loan services, and cash management.

What is at least claimed is: 
     
         1 . An investment vehicle, comprising:
 long investment positions of tradeable investments; and   short investment positions of tradeable investments,   wherein a first financial institution serves as an agent for a manager of the investment vehicle when obtaining at least one of the long investment positions or the short investment positions in the investment, and   wherein the first financial institution extends a letter of credit to a second financial institution when obtaining at least one of the investment positions in the investment.   
     
     
         2 . The investment vehicle of  claim 1  wherein the first financial institution is a bank and the manager of the investment vehicle is a hedge fund. 
     
     
         3 . The investment vehicle of  claim 1  wherein the first financial institution also acts to indemnify a lender of a security associated with at least one of the short investment positions. 
     
     
         4 . The investment vehicle of  claim 1  wherein the first financial institution, acting on behalf of the manager of the investment vehicle, purchases treasury notes at a first point in time for a purchase price and sells treasury notes at a later point in time at a sale price, the sale price being larger than the purchase price. 
     
     
         5 . The investment vehicle of  claim 1  wherein the value of the long positions of tradeable investments is up to about 130% of assets, and wherein the value of the short positions of tradeable investments is approximately 30% assets. 
     
     
         6 . An investment vehicle comprising:
 long investment positions of tradeable investments; and   short investment positions of tradeable investments,   wherein prime broker services for the investment vehicle are provided directly from an agent bank to financial institution without the intervention of a third-party prime broker.   
     
     
         7 . The investment vehicle of  claim 6  wherein the long positions of the tradeable investments are greater than 100% of the market value of the investment vehicle. 
     
     
         8 . The investment vehicle of  claim 6  wherein the short positions of the tradeable investments are equal in value to the amount that the long positions exceed 100% of the market value of the investment vehicle. 
     
     
         9 . The investment vehicle of  claim 6  wherein the value of the long positions of tradeable investments is 130% of the value of the investment vehicle and wherein the value of the short positions of tradeable investments is 30% of the value of the investment vehicle. 
     
     
         10 . A computer-implemented method of providing a financial service over a network, the method comprising:
 receiving via the network, and in a processor at an agent bank, an instruction from an investor, the instruction being associated with an account of the investor and including a request to purchase a security interest in an identified investment vehicle from a vendor of an investment vehicle;   associating the instruction from the investor with an account of the agent bank;   after processing the instruction from the investor received at the agent bank, generating an instruction at the agent bank comprising a request that the vendor of the investment vehicle create a short position in that account for the investment vehicle; and   sending the instruction generated at the agent bank to the vendor of the investment vehicle via the network.   
     
     
         11 . An investment vehicle, comprising:
 long investment positions of tradeable investments; and   short investment positions of tradeable investments,   wherein a first financial institution served as an agent for a manager of the investment vehicle when obtaining at least one of the long investment positions or the short investment positions in the investment, and   wherein the first financial institution extended capital when obtaining at least one of the long investment positions or the short investment vehicles without making a concurring balance sheet entry that affects the amount of capital the first financial institution must maintain as a percentage of assets.   
     
     
         12 . The investment vehicle of  claim 11  wherein the first financial institution is a bank and the manager of the investment vehicle is a hedge fund. 
     
     
         13 . The investment vehicle of  claim 11  wherein the first financial institution also acts to indemnify a lender of a security associated with at least one of the short investment positions. 
     
     
         14 . The investment vehicle of  claim 11  wherein the first financial institution, acting on behalf of the manager of the investment vehicle, purchases treasury notes at a first point in time for a purchase price and sells treasury notes at a later point in time at a sale price, the sale price being larger than the purchase price. 
     
     
         15 . The investment vehicle of  claim 11  wherein the value of the long positions of tradeable investments is up to about 130% of assets, and wherein the value of the short positions of tradeable investments is approximately 30% assets.