Can you elaborate a little by adding to your question? Has this just started, or has he been this way since she was born? Is she in one of those phases now where she prefers you over him? Kids do that a lot, sometimes switching their "loyalties" from one parent to the other over the years.
Does he not know how to play with her, and so he resorts to teasing? Does he do anything right with her, such that you can praise him in front of her? ("Daddy is so funny, isn't he? See how much he loves you?" That sort of thing.)
Is she his primary "target" or do you think he's trying to get more attention from you? Does he feel you are too focused on her, or perhaps more skilled with her?
Is he competitive with you in other areas? Does he try to "one-up" you in other aspects of your life?
Do you feel you can leave him with her while you are out for a good chunk of time? Sometimes kids bond with the parent who is there, because they have to. On the other hand, if you don't trust him alone with her because he will be cruel, then don't leave.
Can you mix up your routine a bit? If both parents are equally skilled at making dinner, driving her to preschool/daycare, giving her a bath, taking her outside on her tricycle, reading her a story, building with blocks....and so on....kids can bond with the other one.
Otherwise, perhaps he needs some parenting classes - and the best way to accomplish that is to say that you BOTH need them and then attend together. Maybe he just needs to practice some positive techniques.
I'd also consider counseling - what was his childhood like? How was he treated by both his mother and father? Who are his male role models?
Those are all things to consider.