Ariana Research
Long/short equity, deep value, special situations

Cowen Group: Trading Below Liquid Assets With An Asset Manager Thrown In For Free

Cowen Group, Inc. (NASDAQ: COWN)

Executive Summary

Cowen Group, Inc. ("Cowen," "COWN" or the "Company") is a leading diversified financial services business. The Company has a market cap of $423.0MM and a tangible net worth of $456MM. As of TTM 6/30/13, the Company derived 63.3% of revenues from its broker dealer segment, 25% from its alternative asset management segment (Ramius) and 11.8% from its invested capital.

Mr. Market, the manic depressive, is currently offering a proven diversified alternative asset management business, a growing growth/middle market oriented broker dealer and $404.0MM of net invested capital at a ~10% discount to tangible book value. Importantly, the undemanding multiples are associated with a business that has grown invested capital at a 16.2%

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