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

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Opportunities Ahead: Asian Fixed Income and Currency Markets

Apr 24 2015 | 6:18am ET

For hedge funds focusing on Asia, the policy uncertainty, unclear interest rate...

 

Editor's Note