Ramius Activist Funds In Spin-Off As Parent Reports Stronger Earnings

Mar 7 2011 | 11:47am ET

Hedge fund Ramius will spin-off its activist unit this month, it said on Friday.

New York-based Ramius, now part of Cowen Group, the boutique investment bank Ramius bought at the end of 2009, will retain a "significant" minority stake in the new firm, to be known as Starboard Value. The current heads of Ramius' value and opportunity funds, Jeff Smith, Peter Feld and Mark Mitchell, will remain at the helm, with Smith serving as the new firm's CEO.

"Due to the nature of the strategy, we are confident that the Value and Opportunity business will be in a better position, managed as a stand-alone entity, to attract additional capital from institutional investors seeking an experienced, accomplished and professional team with a  proven methodology using shareholder activism," Ramius chief Thomas Strauss said.

The split is also expected to help Cowen, which may have feared that having an in-house activist unit would scare off potential investment-banking clients. The spin-off should be completed by March 31.

Cowen on Friday also announced that it turned a profit in the third quarter, taking in $4.1 million in net income. In the year-earlier period, it had posted a $23.4 million loss, even though its revenue in both quarters was the same: $69.7 million.

Cowen said its assets under management rose to $9 billion from $8.2 billion on the quarter. Management fee income rose 31%.

For the full year, Cowen said its loss was $45.4 million, down from $55.3 million in 2009. Revenue soared to $233.8 million from $123.9 million.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…