Cantor Fitzgerald Restructuring Reduces O'Connor Presence in Asia and Europe

Cantor Fitzgerald LP is scaling back the international operations of O’Connor, the hedge fund it acquired from UBS Group AG according to Bloomberg. The restructuring will shift the investment team's primary base to the US, with some remote support from other locations as reported. This move marks a significant shift from O’Connor’s previous footprint in Europe and Asia, where it previously had active teams.

The firm’s decision to centralize operations comes amid a broader shakeup in its portfolio. Two of O’Connor’s strategies—Working Capital Solutions and China Long-Short—are being liquidated, according to people familiar with the matter. The Working Capital Solutions strategy was exposed to the now-defunct First Brands, while the China Long-Short strategy managed only $250 million in assets as Bloomberg reported.

The Global Multi-Strategy Alpha business, one of O’Connor’s largest strategies, also has exposure to First Brands but to a lesser extent according to reports. Cantor Fitzgerald has agreed to acquire most of the remaining strategies from UBS, including Merger Arbitrage and Capital Solutions as Bloomberg noted.

Why Did This Happen?

Cantor Fitzgerald had initially sought to renegotiate the terms of the deal with UBS due to First Brands’ financial collapse in September 2025 according to Bloomberg. The auto-parts supplier’s failure raised concerns about the risk profile of some O’Connor strategies as reported. As a result, Cantor agreed to acquire only four of the six strategies, leading to a significant reduction in the overall footprint according to Bloomberg.

This restructuring also aligns with Cantor’s strategic focus on simplifying operations and minimizing risk exposure as Bloomberg reported. The decision to shift operations to the US is likely aimed at streamlining decision-making and reducing overhead costs according to reports.

How Did Markets React?

The deal has not been without cost for UBS. The Swiss bank reported a $29 million loss in the fourth quarter related to the sale of its O’Connor business to Cantor Fitzgerald as Bloomberg reported. UBS CFO Todd Tuckner explained that the loss stemmed from a reduction in the scope of the original deal according to Bloomberg.

Despite the loss, UBS appears to be moving forward with the transition. The transfer of funds and assets is expected to complete by March 2026 as reported. O’Connor’s assets under management are projected to drop from $11 billion at the time of the deal announcement to $8.5 billion by the end of the transfer according to Bloomberg.

What Are Analysts Watching Next?

Cantor Fitzgerald has also made other strategic moves beyond the O’Connor restructuring. The firm recently upgraded its rating on DigitalOcean to Overweight from Neutral, raising its price target to $68 according to Investing.com. This move reflects growing demand for cloud-based computing services as reported.

Additionally, Cantor reconfirmed its Overweight rating on NXP Semiconductors, maintaining a $280 price target as Bloomberg reported. The firm cited the company’s long-term growth potential and resilience despite short-term challenges in the automotive sector according to reports.

In the broader market, Cantor Fitzgerald’s restructuring of O’Connor is likely to be viewed as a rationalization of its hedge fund portfolio amid shifting market conditions as Bloomberg noted. The firm’s move to focus on core strategies and reduce international operations could signal a broader trend among asset managers seeking to optimize performance and risk according to reports.