Hedge funds that use more than one prime broker – typically the largest funds – ranked Morgan Stanley first, according to the 2011 Global Custodian survey. The Firm took top rankings in eight of 14 service categories, including Client Service, Operations, Securities Lending, OTC Derivatives Clearing, Reporting, Prime Custodial Services, Technology and Overall.

Morgan Stanley also ranked No. 1 based on weighted scores among the 132 hedge funds that Global Custodian deemed leading clients. In order to qualify for inclusion in this list, a hedge fund had to have rated multiple prime brokers.

In addition, Morgan Stanley ranked No. 1 or No. 2 among clients in common in every asset size category starting at $100 million and above. And among hedge funds with at least $1 billion in assets, Morgan Stanley received more Best in Class ratings across all categories than any other firm.

"All scores are up sharply, and strong across every size, region and strategy," the Global Custodian editors wrote in a summary of Morgan Stanley Prime Brokerage's performance that appeared in the Summer 2011 issue. "Overall, Morgan Stanley remains the gold standard in prime brokerage."

The Global Custodian editors also noted, "The introduction of segregated custody for unencumbered assets at the Morgan Stanley trust bank wins praise. Continuing investment in technology pays off." One large client cited Morgan Stanley for the "best technology on the Street," and a smaller client wrote, "Reporting delivery tools are excellent, flexible, robust and timely."

"The respondent who finds 'they want to be and continue to be a genuine partner with our firm and help us grow' has probably captured the current character of Morgan Stanley best," the Global Custodian editors concluded.