Wednesday, 28 September 2016
Last updated 6 hours ago
Jun 27 2011 | 3:06am ET
Capstone Holdings Group's holdings will soon be just one: hedge funds.
The New York-based firm will close its broker-dealer unit, Capstone Global Markets, by the end of the month, founder Paul Britton told Bloomberg News. The firm is moving to focus exclusively on its $1.1 billion hedge fund unit, Capstone Investment Advisors, as regulators increase their scrutiny of brokers and investors shy away from potential conflicts of interest.
"Investors are asking for more alignment from their managers and a simpler platform that is free of potential conflicts," Britton said. "We want to focus on our core expertise of volatility trading."
Capstone Global Markets employs about four people.
Separately, Britton said the firm in January added former Stark Investments partner Joe Lukas as its new president and chief operating officer.