Clinton Sees 'Rebirth' For Brokerage Gleacher As Money Manager

Apr 22 2013 | 10:55am ET

Hedge fund Clinton Group formally launched its bid to remake Gleacher & Co., calling the brokerage "broken" but poised for a "rapid rebirth" as an asset manager and proprietary trader.

New York-based Clinton told Gleacher investors in its proxy today that its nominees to Gleacher's board, including current CEO Thomas Hughes, "can help the company execute a rapid rebirth that focuses on new areas of financial services."

"We firmly believe that Gleacher is a valuable brand and that there is a significant opportunity to use the brand and other corporate attributes to establish a differentiated and successful investment manager."

Clinton has an uphill battle ahead of it: It owns only 3.5% of Gleacher and has built a partnership that controls 7.7% of the firm. Private-equity firm MatlinPatterson, which plans to run its own slate of board candidates, owns 28% of Gleacher and is the firm's largest outside shareholder.

MatlinPatterson said it was to clear out Gleacher's existing board, which is not taking a position in the proxy. Gleacher earlier this month quit the fixed-income business and broke off merger talks.

Hughes, Gleacher's current CEO, is a former chief operating officer at Clinton Group.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...