Elliott Hedge Fund Trader Lyon to Join Fortress-Backed Startup

Tom Lyon, a senior trader at Paul Singer’s Elliott Management Corp., is joining a startup credit hedge fund, according to people familiar with the matter.

Lyon will join $200 million Carronade Capital Management in March, said the people, who asked not to be identified because the matter is private. He will be a partner and managing director of trading at the Darien, Connecticut-based firm, which invests across credit strategies.

Carronade was founded last year by Dan Gropper, a former managing director at Mark Brodsky’s distressed-debt hedge fund Aurelius Capital Management. In November, the firm, ...