FBR Capital Markets Cuts Health Care Team
By Thomas Heath
Rosslyn-based FBR Capital Markets on Wednesday laid off its 11-member health care research staff and decided to no longer continue coverage of the sector.
"We had not had the level of success we would have liked, given our level of investment," said FBR Capital Markets President Richard J. Hendrix. "So we decided to reallocate those resources."
The cancellation of health care coverage follows the recent departure of FBR biotech analyst James F. Reddoch, who was the managing director of FBR's health research department.
Hendrix said Reddoch's departure "may have influenced our timing to some degree, but it did not determine our decision overall. This was something we were evaluating for awhile. We had just been unable to create revenue streams around that research to justify continuing the business."
Hendrix said the firm is continuing to invest and grow other parts of the company. It recently hired several former Bear Stearns employees to work in FBR's investment banking division and in sales and trading.
FBR's research division is best known for its coverage of financial services, real estate and energy. The company has 120 analysts and employees in its research department, including 40 senior analysts.
July 10, 2008; 7:59 PM ET
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