Tuesday, 30 August 2016
Last updated 1 hour ago
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.