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Sell-side == banks, selling financial instruments / market access to investors. Buy-side == hedge funds, proprietary trading companies, high-frequency market m

by tomp 7y ago

Sell-side == banks, selling financial instruments / market access to investors. Buy-side == hedge funds, proprietary trading companies, high-frequency market makers, maybe also VCs, PEs, investing (their own or other people's) money, buying financing / market access / financial instruments from the sell-side.

deleted 7y ago
[deleted]
osullivj 7y ago
Sell side are selling liquidity, they're like car dealers who stand ready to buy or sell any financial instrument with buy side firms. As well as the buy side firms listed by tomp above there are also what we call "real money": pension and insurance funds. Unlike hedge funds they are regulated and have to run long only strategies. Can't have pension funds blowing up LTCM style.
- notfromhere 7y ago
  They can allocate to hedge funds, but a number like CalPERS divested entirely from alternatives
  - osullivj 7y ago
    Maybe in the US, but that wouldn't be permitted in the UK.