Cantor Fitzgerald Plans Jump Into Hedge Funds

Aug 17 2011 | 12:58am ET

Cantor Fitzgerald is eyeing an expansion into hedge funds with plans to acquire both funds of hedge funds and single-manager teams.

The New York-based investment bank hopes to use its infrastructure and fund-raising capacity to attract talent. Cantor plans to buy one or two strategy-specific funds of funds over the next six months, Stephen Ardizzoni, head of the firm’s investment advisory business, told Bloomberg News, before seeking single-managers.

Ardizzoni said Cantor has already looked over as many as 75 managers over the past eight months and has “a couple” of potential acquisition targets in mind.

“The asset management space is still trying to get sure-footed,” he said. “There are gems out there that really do need institutional support.”

To that end, Cantor will provide the hedge funds it acquires with infrastructure, technology and prime brokerage services. In addition, managers joining Cantor will have access to the firm’s 4,000 clients.

“For funds with less than $10 billion in assets, it is almost impossible to effectively raise institutional capital,” Ardizzoni told Bloomberg. “This is what has really created an opportunity set for us to strategically build an asset management business.”

After bringing on the fund of funds managers, Cantor may begin raising money to seed start-up hedge funds within the next six months to a year. And over the next one to three years, the firm will seek out single-managers to add to its platform. Ardizzioni said that Cantor would focus on former proprietary trading teams as well as teams spun off from investment banks or multi-strategy hedge funds. In particular, Ardizzioni told Bloomberg that the firm has its eye on specialist managers, among them directional credit, mortgage-backed and relative value credit managers.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Controlling With Confidence: A ‘How-To’ For Hedge Fund Managers

Dec 22 2014 | 11:52am ET

Hedge funds are increasingly turning to third party services to help with operations...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.