Capstone To Close Broker-Dealer Unit

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.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain Capital: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of