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

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note