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.”