Cowen Revenue Soars As Post-Ramius Merger Loss Narrows

Nov 11 2010 | 11:40am ET

Cowen Group, the parent of hedge fund Ramius Capital, cut its third-quarter loss as revenue at the firm more than tripled.

The New York-based boutique investment bank, which reverse-merged with Ramius last year, said its pro-forma loss—which assumes the merger occurred a year earlier than it did—dropped to $12.9 million from $15.2 million. Actually, the loss grew to $15.4 million from $5.9 million a year earlier, due to expenses related to the merger.

Cowen’s investment banking revenue dropped 39% and brokerage revenue fell 20%. But overall revenue was up more than threefold, at $52.2 million.

“In our alternative investment management business, the decision to focus efforts on delivering products and services that offer enhanced liquidity and transparency has resulted in a steady increase in assets under management over the course of 2010,” CEO Peter Cohen said. The firm’s assets stood at $8.2 billion at the end of September, up $677 million year-on-year.

"Over the past 12 months, we have reorganized many aspects of Cowen Group's businesses and we are pleased with the progress that has been made to date in reshaping the strategic footprint of our organization," Cohen said. "We continue to be concerned about the longer term sustainability of the economic recovery and remain cautious in our investment profile and in our business build out. Nonetheless, we have made progress on the cost savings initiatives that we have implemented since the merger which is enabling us to make tactical investments in businesses where we see revenue opportunities.”


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.