Icahn Alumnus Sets Stage for Activist Fund

Russell Glass, an activist investor best known as a former lieutenant of Carl Icahn, has been talking to investors about launching a hedge fund.

Glass once held the title of president at Icahnís family office, Icahn Associates, and later ran an equity fund at Sam Wylyís Ranger Capital. But for the past four years, he has been managing money via his RDG Capital of New York.

It now appears that Glass wants to raise a substantial amount of money for an activist hedge fund. One source said heís hoping to start off with $200 million.

Thatís quite doable considering Glassí resume ó coupled with surging investor demand for activist funds. In 2013, investors poured more than $5 billion of fresh capital into activist vehicles, according to Hedge Fund Research. Meanwhile, some of the most prominent managers have been delivering strong returns, with William Ackmanís Pershing Square Capital up more than 19% this year as of April 30.

Itís unclear whether Glassí firm has been managing outside capital up to this point. RDG isnít registered with the SEC as an investment advisor ó a requirement for any manager with gross assets of $150 million or more.

Glass worked at Icahn Associates for about four years in the late 1990s and early 2000s, then accepted an offer from Ranger to start an equity business called Ranger Partners. Earlier in his career, he worked at Kidder Peabody and Relational Investors. Glass is a part owner of the New York Mets and San Diego Chargers.

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