Macquarie Group Ltd., the Australian bank that bought Fox-Pitt Kelton Cochran Caronia Waller LLC last year, lost U.S. equity capital markets head Jim Rossman and at least four stock-market analysts.
Besides Rossman, the departures included analysts David Trone, Robert Stallard, Andrew Marquardt and John Pancari, spokesman Stephen Yan confirmed. Rob Redmond, a vice chairman at Macquarie Capital, will remain responsible for the firm’s equity, debt and private capital businesses, Yan said.
Macquarie, Australia’s largest investment bank, paid $146.7 million in 2009 for Fox-Pitt, a 260-person firm that specialized in the financial-services industry, to expand its U.S. research and equities business. Sydney-based Macquarie, which has added to its U.S. equities business this year, generated $1.35 billion of revenue from the Americas for the year ended March 31, more than triple that of a year earlier.
“In a business that size you always get churn, but staff turnover is a risk when you buy financial-services businesses,” said Sean Fenton, who helps manage about $1 billion at Tribeca Investment Partners in Sydney. “People are key. That’s the challenge for Macquarie going forward.”
Trone, who covered investment banks and brokers, is joining JMP Group Inc., and Stallard, an aerospace analyst, is set to join RBC Capital Markets, people briefed on the matter said. They declined to be named because the hires haven’t been made public.
Victor Sack joined Macquarie from Bank of America Corp. as a managing director in equity capital markets’ financial institutions group, and Steve Mehos was recently promoted to head of debt capital markets from head of leveraged finance, Yan said.
Andrew Marquardt, who covered large commercial banks, left Macquarie to join Evercore Partners Inc., two of the people said. Cowen Group Inc. said in April it hired John Pancari from Macquarie as an analyst covering shares of U.S. banks and thrifts.
Macquarie has hired John Moran and Stephen Scinicariello as senior bank analysts, according to an e-mailed statement. Moran, who most recently worked at Value Architects, and Scinicariello, who comes from BlackRock Inc., joined on June 15. Macquarie has added 30 people to its U.S. equities business this year, including research and sales and trading hires, Yan said.
“We’re very confident about the year ahead in our equities platform,” Yan said. He said the firm covers almost 600 stocks, and he cited a Greenwich Associates survey that said Macquarie has climbed to 11th from 24th in rankings of research market share.
Trone, Pancari and Marquardt had joined Macquarie as part of the Fox-Pitt Kelton purchase. Rossman joined the firm from HSBC Holdings Plc in 2008, and Stallard joined the same year from Bank of America.
Trone, who left Macquarie in April, will join JMP after his non-compete period expires, one of the people said. Trone will help replace Michael Hecht, who left JMP to become a senior vice president of corporate development at Charles Schwab Corp., which Hecht covered.
Charles Myers, Fox-Pitt Kelton’s head of equities, joined Evercore in December to start its new cash-equities business. Scott Barishaw and Ned Roseberry, both of whom came to Macquarie from Fox-Pitt Kelton, followed Myers to Evercore earlier this year.