Cantor Fitzgerald Investment Advisors, a subsidiary of financial firm Cantor Fitzgerald, acquired San Diego-based Efficient Market Advisors, officials of the companies confirmed Tuesday.
Herb Morgan III, EMA's founder, CEO and chief investment officer, said in an interview that the sale will put the ETF investment strategy firm, with $1.1 billion in assets under advisement, in a better position to grow its assets. “The global reach and distribution of Cantor Fitzgerald was too good to pass up,” he said.
EMA does not have its own funds but places clients' money in portfolios of third-party exchange-traded funds.
Mr. Morgan said he signed a 10-year employment deal, showing his commitment to EMA long term. The 13-person firm will remain in San Diego, he said. Mr. Morgan said the deal closed on Feb. 28.
Neither Mr. Morgan nor Karen Laureano-Rikardsen, Cantor Fitzgerald's chief marketing officer and head of corporate communications, would disclose the purchase price. Ms. Laureano-Rikardsen said in an email that Cantor is a partnership, so the terms aren't disclosed.
Shawn P. Matthews, CEO of Cantor Fitzgerald & Co., said in a statement that the firm is putting an emphasis on expanding its asset management business. “With this transaction, we continue the build out of our asset management business, which is an important element of the overall strategic direction of our firm," he said.
Cantor Fitzgerald also owns Cantor Fitzgerald Asset Management and Cantor Fitzgerald Wealth Management. In March 2014, Cantor Fitzgerald Asset Management announced it had acquired Fintan Partners, a fixed-income absolute-return hedge funds-of-funds manager.