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January 23, 2019  

Marble Arch Shutdown Spawns Startups

At least four executives from the now-shuttered Marble Arch Investments are starting their own hedge funds.

Marble Arch co-founder Timothy Jenkins is aiming for the second quarter to open a management shop whose staff also would include former partner Joseph Talia. Sources said the new operation’s strategy would deviate slightly from Marble Arch, which made value-oriented stock selections worldwide.

Meanwhile, Michael Bilger, who had been a partner at Marble Arch, is forming a New York firm called 59 North Capital that will take a long/short equity approach. He has five employees so far, including at least three who spent time at Marble Arch.

A third former Marble Arch executive, Will Thompson, is progressing with plans to start a New York firm called White Post Investments. Thompson, who began planning the operation in mid-2018, is aiming for March to launch a vehicle that would employ a long-biased approach to trading small- and mid-cap stocks in the industrial, financial and consumer sectors worldwide. White Post’s portfolio typically would be concentrated in 10-15 positions, with some opportunistic short bets.

Jenkins and Marble Arch co-founder Scott McLellan notified investors in May that they were shutting down the $2.4 billion operation, citing disappointing performance. The New York firm had entered the month with a year-to-date loss of 0.5%, following a 3.3% gain in 2017 and a 1.1% slide in 2016. Before starting the firm in 2007, Jenkins and McLellan worked at Tiger Management.

Talia arrived in 2010 from Ziff Brothers Investments. Bilger joined in 2012, having previously worked at TPG Capital. Thompson started in 2007 after a stop at investment-banking firm Legacy Partners.

Their efforts place Marble Arch among a number of fund operators including Blue Ridge Capital and Tourbillon Capital whose closures have spawned new management firms. The startups include 6elm Capital, founded by former Tourbillon executive Katrik Joshi, and Bayberry Capital, led by former Blue Ridge executives Angela Aldrich and Brian Smith.