Cowen Loss Grows Despite Revenue Spike

Aug 13 2010 | 11:01am ET

Cowen Group—the former Ramius Capital—suffered a “disappointing” second quarter as its quarterly loss widened.

The New York-based firm—the result of Ramius’ acquisition of Cowen, a boutique investment bank, last year—lost $21.2 million, compared to $17.2 million in the second-quarter of last year. Even adjusting for the merger, the loss grew from $15.8 million to $17.9 million, despite the fact that revenue more than tripled to $55 million.

“Our second-quarter performance was disappointing, particularly given our diverse business platform,” CEO Peter Cohen said. “Notwithstanding the challenges of the current environment, the shortfall in banking revenues and decline in commission income, combined with a lower level of investment income, were the primary reasons for these results.”

Investment-banking revenue fell 16%, and its alternative investment business didn’t make up for its, with assets under management staying flat at $7.9 billion.

The firm has begun a series of cost-cutting and revenue-enhancing measures to turn around the performance.

“We have added a number of new professionals during the quarter in July which we believe will enhance our product offerings and therefore the opportunity to increase revenues meaningfully in the coming quarters,” Cohen added.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of