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UPDATE 1-Cowen Group posts wider-than-expected Q4 loss
March 2, 2010 / 4:09 PM / 8 years ago

UPDATE 1-Cowen Group posts wider-than-expected Q4 loss

* Q4 adj. loss $0.41/shr: Thomson Reuters I/B/E/S

* Q4 est. loss $0.19/shr: Thomson Reuters I/B/E/S

* Total expenses rise 59 pct

* AUM falls 26 pct

* Shares fall nearly 10 pct

March 2 (Reuters) - Cowen Group Inc (COWN.O), the investment bank taken over by hedge fund Ramius LLC in November, posted a wider-than-expected quarterly loss, hurt by rise in expenses and lower assets under management, sending its shares down 10 percent.

Assets under management fell 26 percent to $7.85 billion on Jan. 1, 2010, from $10.57 billion at Dec. 31, 2008.

For the fourth quarter, net loss attributable to shareholders was $23.4 million, or 46 cents a share, compared with a loss of $76.3 million, or $2.03 a share, a year ago.

Total revenue rose to $60.4 million, from $27.3 million a year ago.

The company posted an adjusted loss of 41 cents a share while analysts on average had expected a loss of 19 cents a share, on revenue of $64.50 million, according to Thomson Reuters I/B/E/S.

Total expenses rose 59 percent to $81.7 million. Employee compensation and benefits more than doubled to $45.7 million.

Shares of the company were trading down 7 percent at $5.10 in morning trade Tuesday. They touched a low of $4.97 earlier in the session. (Reporting by Jochelle Mendonca in Bangalore; Editing by Unnikrishnan Nair)

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