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March 11, 2020  

York Alum Combines Public, Private Deals

A former York Capital executive is starting a hedge fund firm that would trade public equities while allowing limited partners to co-invest in private-company deals.

Glen Gordon is aiming for July to launch the debut fund from his New York-based Markley Capital. There’s no word yet on whether he has begun marketing the vehicle broadly or how much capital he hopes to raise, but sources said his history as one of just a few senior managing directors at York should attract serious attention from institutional investors.

The fund primarily would take long and short positions in a concentrated portfolio of stocks identified via fundamental research, with its positions spanning numerous sectors. The strategy may key in on certain event-driven catalysts, emphasizing complex companies that Gordon views as out of favor with other investors, a source said.

On the co-investment side, early indications are that Markley would shop ideas for promising deals to the hedge fund’s limited partners, who could choose to put money to work alongside the firm. But it’s not entirely clear whether the investments would take place through the hedge fund or as separate deals.

Either way, the format would draw on Gordon’s former role as a private equity specialist at the $18.5 billion York. He started at the New York multi-strategy firm in 2006 after working at Bain Capital.

At Markley, Gordon appears to be betting that investor demand will remain strong for products that combine exposures to public and private companies. Case in point: Former T. Rowe Price portfolio manager Henry Ellenbogen raised about $6 billion for the fourth-quarter launch of his Durable Capital.

Part of the pitch also is that Gordon is well positioned to blend his experience with the public-equity expertise of senior analyst Prasad Phatak, who since 2011 was running an event-driven shop called Tappan Street Partners. Indications are that Phatak, formerly of Eton Park Capital and Blackstone, began unwinding that operation in recent months in anticipation of joining Markley.

Gordon also has hired Tom Dwan as chief operating officer and chief financial officer. Dwan had been working since 2011 as president of Emerging Sovereign Group, and before that was at Touradji Capital.

Gordon has been interviewing candidates to serve as head of research.