The merry-go-round in prime brokerage continued when Cantor Fitzgerald hired a former J.P. Morgan managing director to head up its equity prime services origination business in New York. The aptly-named Michael Fitzgerald started at Cantor Fitzgerald earlier this month, Finra records confirm.
Prime brokerage has been an interesting sector to watch over the last several months as most firms are either growing or contracting, depending on their appetite for risk. Traditional players like Credit Suisse and Deutsche Bank have been making cuts, with revenues at the latter’s once-lucrative hedge fund unit declining for the third straight year in 2018. Meanwhile, other lesser-known firms like FCStone are just getting into the potentially lucrative yet capital-intensive business. Other somewhat recent entrants include Standard Bank and BNY Mellon. Bank of America is still remaking its team following an alleged sex scandal.
Fitzgerald spent the majority of his career at Morgan Stanley before jumping to J.P. Morgan in 2012. He was most recently the CEO of DACC (Digital Asset Custody Company), a crypto custodian for hedge funds and other institutional clients. Cantor Fitzgerald has also just hired Sean Capstick to help lead its prime brokerage business in London, according to Reuters.
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