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

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...