Cantor expands in Singapore, targets hedge funds

SINGAPORE, May 8 (Reuters) - U.S. broker Cantor Fitzgerald & Co is expanding its Asian equities and derivatives business to Singapore, targeting sales to institutional clients such as hedge funds, an executive said on Thursday.

"We chose Singapore due to the fact that it has become one of the newest destinations in Asia for hedge funds," William Selig, a managing director at the firm who will head the local office, told Reuters.

"The Singapore government's foresight in developing a global financial hub attracted us here."

New York-based hedge fund manager Galleon Group is also setting up a Singapore office to manage its $1.1 billion Asian long/short equity fund, and to venture into new fund products, banking sources told Reuters last month.

Cantor's expansion is in contrast to a number of large financial institutions, which have shed jobs aggressively in recent months.

Wall Street investment banks, stung by debt losses, have axed tens of thousands of jobs, but even more significant reductions are expected amidst a bleaker earnings outlook.

Selig said the focus was to provide execution services to institutions, such as hedge funds and corporates. It has a team of five sales staff, but plans to hire more, he added.

The number of hedge funds in Singapore rose 76 percent to 190 in 2006, while assets managed by these funds rose 150 percent to $26 billion, according to central bank data.

With the addition of Singapore, Cantor Fitzgerald has offices in 30 locations around the world, including Hong Kong. (Reporting by Saeed Azhar; Editing by Jennifer Tan)