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: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

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

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of