Mick McGuire, a former partner at Bill Ackman’s Pershing Square Capital Management, has formed Marcato Capital Management and is preparing to launch a long/short equity fund early next year. Marcato Capital will hold concentrated positions in North American companies while applying an activist and event-driven overlay.
McGuire joined Pershing four-and-a-half years ago as a partner and has worked directly with Ackman on his activist positions. McGuire built his own personal position in Landry’s Restaurants in October, and Pershing built its position in November.
Together, McGuire and Pershing filed a 13-D with a combined 9.9% ownership and approximately 24% economic interest in Landry’s to oppose the chief executive’s offer to take the company private.
Earlier this year, McGuire became the non-executive chairman of bookseller Borders, in which Pershing owns a 40% economic interest through swaps, warrants and common stock. Landry’s stock closed at $20.53 on December 16, up 103% from October 2, when McGuire began building his position. Borders closed at $1.19 on December 16, up from $0.40 at the beginning of the year.
Before joining Pershing in April 2005, McGuire worked at J.H. Whitney & Co. and at Stonington Partners, both private equity firms. McGuire’s fund will manage 10 to 15 positions in mid-cap stocks. McGuire and Ackman declined to comment. Pershing has not yet replaced McGuire.
Pershing has returned 24% in 2009 through September. It dropped 12% in 2008.
Suzy Kenly
