The hedge fundfinalized its dealto buy an ownership stake in AMI in the summer of 2014. Chatham Asset Management is a hedge fund with 13 clients and discretionary assets under management (AUM) of $8,608,297,054 (Form ADV from 2022-03-30). Luxury Homes for Sale in Grasse, Provence Alpes Cte D'azur, France During the last five years, taxpayers in New Jersey, Ohio and California have owned large financial stakes in the owner of the media company that allegedly helped the Trump campaign bury negative stories, according to documents reviewed by Capital & Main and MapLight. Powered and implemented by Interactive Data Managed Solutions. Altogether, the company has cut over 1,600 employees since 2016, or 38 percent of its staff, based on company filings. Anthony Melchiorre has served as Managing Member/Portfolio Manager of Chatham Asset Management, LLC since 2003. NJBIZ, New Jerseys leading business journal, provides 24/7 business news coverage and events honoring top business professionals. Subscribe for access to the latest digital and special editions. (One of the people whom Chatham installed on the Postmedia board was Daniel Rotstein, a consultant for American Media.). The California state pension system has been planning to exit all of its hedge fund investments and has been asking Chatham to sell holdings so it can return about $200 million. Chatham did not respond to questions about how exposed taxpayers and pension systems might be to AMI and any financial consequences of its legal entanglements. Revenue has dropped an average of 10 percent a year since 2016. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. The New York Post put the story on its front page under the headline Frisky Business. (Grimstad has called those allegations false and meritless.). Chatham, which manages about $4 billion in assets on behalf of its clients, is expected to become the majority owner in the third quarter of the year, McClatchy said, and the publicly traded newspaper company will go private. While DOI plays no role in the management of a funds portfolio companies, it expects the funds to invest in good businesses with strong management teams that follow all applicable laws.. Thoserecordsshow the original $500 million investments are now worth as much as $692 million. Postmedia and Torstar concluded the deal with no cash changing hands. Postmedia, where Pecker sat on the board until last August, has posted annual losses for most of the past decade. A bankruptcy court hearing on the matter is scheduled for July 24. With McClatchy, the hedge fund also designed a trade aimed at reaping a windfall through credit-default swaps. The firm and its founder, Anthony Melchiorre, have a reputation for hard-edged business. Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. And given the strains in the print-media business, the strong price of the debt is difficult to explain, traders say. Washington D.C., April 3, 2023 . Chatham has never had any relationship with, spoken to or compensated Michael Cohen, a representative for the firm said in response to queries from Bloomberg. They stay away from editorial matters but tend to focus on finding efficient ways to cut costs, according to two of the people. 2023 BridgeTower Media. (The most memorable thing he said was Disney would not be selling the papers anytime soon, but they were on the block a year later.). Fortune said Melchiorre wasnt a particularly good fit at the firm and irritated some senior executives. Download 13F Summary The SECs order also finds that Chatham and Melchiorre calculated the net asset values, or NAVs, of their client funds holdings using pricing data that was based, in part, on the trading prices of the securities. Anthony Ralph Melchiorre is an employee with Chatham Asset Management, LLC, a hedge fund company. Chatham Asset Management Increases Offer to Acquire R.R. Donnelley to Despite the losses, Postmedia has managed to shunt most of its cash toward paying off its heavy debt load, which ultimately will benefit Chatham. John Kasichs appointeescommitted$125 million to Chatham. All text and design is copyright 2020 WhaleWisdom.com. The iPayment case thrust questions about Chathams bond-trading methods into the open. After he departed amid a round of layoffs, Melchiorre quit Manhattan to join the Jersey Boys, a clique of hedge funders across the Hudson River that included billionaires Cooperman and David Tepper. (Bloomberg) -- The threat was blunt: Back off, or there will be trouble. Yes, Tony Ridder came to The Star newsroom when KR bought the paper. Washington, D.C.--(Newsfile Corp. - April 3, 2023) - The Securities and Exchange Commission today charged New Jersey-based Chatham Asset Management LLC and its founder, Anthony Melchiorre, in . Shadowy and scaryThat's the prospective new owner of The Star and the The SEC would like to thank the Financial Industry Regulatory Authority for its assistance with this matter. Donnelley to $10.85 Per Share in Cash. [2]: Anthony Melchiorre has an ownership stake in Chatham Asset Management, LLC of between 50% and 75%. Under Hedge Fund Set to Own McClatchy, Canadian Newspapers Endured Big Within weeks, the notes were back at about par. 6LinkedIn 8 Email Updates. Local journalism has never been more vital, Mr. Forman said, and we remain steadfast in our commitment to delivering on our mission and continuing to serve our communities.. Chatham has been restructuring their debt to give them more time. Chatham Asset Management to Pay $19.3M to Settle SEC Charges. What a great word! When completed, an email will be sent to the email address you specify Chathams tabloid publisher possesses a treasure trove of Trumps secrets, his former fixer Cohen told Congress last month. Price swings on the trades described in the lawsuit marked the biggest-ever percentage changes in those securities, data reviewed by Bloomberg show. That kind of showing helped the firm attract $300 million from investors this quarter, a person familiar with the matter said. After years of declines in revenue and print circulation, the McClatchy Company, one of the largest and most respected news publishers in the country, announced on Sunday that it expected to be bought by Chatham Asset Management, a New Jersey hedge fund, at the conclusion of a bankruptcy auction. After several stints at elite firms like Goldman Sachs and Morgan. CHATHAM ASSET MANAGEMENT, LLC Top 13F Holdings - WhaleWisdom.com After stints at Donaldson, Lufkin & Jenrette, and Goldman Sachs Group, Melchiorre landed at Morgan Stanley in 1998 where he rose to head the junk-bond trading group. CHATHAM, N.J., Sept. 1, 2021 /PRNewswire/ -- Chatham Asset Management, LLC (" Chatham "), a private investment firm which manages funds that beneficially own approximately 14.9% of the. The Securities and Exchange Commission has stepped up examinations of various bond funds lately, inquiring about their relationships with brokers and how they value debt. Fauci says the general public somehow didnt get his messaging that the vulnerable are really, really heavily On Thursday, Lyfts new CEO laid off over 1,000 employees. This much is sure: Chatham founder Melchiorre, 51, has a formidable reputation. But opting out of some of these cookies may have an effect on your browsing experience. There are 8 other people named Anthony Melchiorre on AllPeople. divided by the total MV of the fund. Chathams tabloid publisher possesses a treasure trove of Trumps secrets, his former fixer Cohen told Congress last month. Since it was founded in 2001, Seaport Global has been in full compliance with all laws and regulations governing our industry, the company said in a statement. I think Ill go to Egypt, Brazil and Africa before my $891.23 monthly pension check stops coming. I have no regrets whatsoever about going with the monthly pension. Like Warren Buffett, Wall Street traders and just about everyone else, Chatham has no illusions about where the newspaper industry is headed; it just wants to bleed them of cash, or, perhaps, sell them at a nice profit to another chain. Internal hedge fund records from late 2017 show that AMI investments comprised 23 percent of the Chatham Asset Partners High Yield Funds portfolio. Chatham Asset Management, LLC Anthony Melchiorre Managing Member - Form /s/ Anthony Melchiorre Anthony Melchiorre Managing Member Contacts. Chatham Asset Management, LLC Anthony Melchiorre Managing Member Dear Mr. Melchiorre, We are writing to follow up on our discussions with regards to your non-binding, conditional indication of interest to acquire R. R. Donnelley & Sons Company. That may worry McClatchy journalists, who are wondering how Chatham would run the business at a time when Google and Facebook dominate the online ad market and fewer readers are willing to pay for news, challenges that have been worsened by the coronavirus pandemic. After sinking their claws into such companies, they suck out the cash and invest the money elsewhere, where they can get better, surer returns. Grimstad claimed in filings that Chatham had manipulated iPayment bonds to seize control of the company. Found 4 colleagues at Chatham Asset Management. If they dont do a good job serving their community, the profits wont follow.. Chatham, which manages about $4 billion in assets on behalf of its clients, is expected to become the majority owner in the third quarter of the year, McClatchy said, and the publicly traded. Chatham Asset Management Sends Letter to R.R. Donnelley Board of Suite 3200 During that time, it invested relatively little, about $5.4 million, to try to improve the business. The notes dont pay regular interest in cash, a sign of their inherent riskiness. Chatham and the Enquirers publisher, David Pecker, had turned to Trumps fixer as a mediator. Thats because they are losing to him.. Aiysha Johnson will take the helm of the 13,000-plus member organization following Ralph Albert Thomas' June retirement. And it means that a news company known for winning top journalism prizes is likely to become the property of a firm that owns The National Enquirer and other supermarket tabloids. Hedge Fund An SEC spokesman declined to comment. Andrew MacLeod, the chief executive of Postmedia, said that Chatham was not a day-to-day operator of the business, and that the cost cuts were all natural outcomes of a legacy business thats been in structural decline. He added that when Chatham came on board in 2016, it was one of the few financial players willing to take a risk on a newspaper business. Anthony Ralph Melchiorre is an employee with Chatham Asset Management, LLC, a hedge fund company. Journalists employed by McClatchy, as well as the mayors in Lexington, Ky.; Sacramento; and Miami three cities served by McClatchy papers pushed for local, civic-minded ownership of the chain. Then theres American Media. What asset class is best for corporate plans' growth investments when using LDI? All Rights Reserved. Grimstad knows what its like to be under a tabloid-like glare. And in 2006, when McClatchy bought out Knight Ridder, McClatchy C.E.O. Austin Weinstein Hedge fund Chatham Asset Management and its founder, Anthony Melchiorre, agreed to pay more than $19 million to settle US allegations that the firm improperly traded. Chatham is led by Anthony Melchiorre, a Chicago-area native who has earned a reputation on Wall Street as a tough negotiator. Serving as the lead backstop investor in Vericasts multibillion dollar refinancing transactions in 2020 and 2021. Bob Hepburn, a Torstar spokesman, said, Torstar continues to cooperate with the bureau in its investigation.. Products. [1]: The guy who will be drawing the blood, Anthony Melchiorre, apparently is a piece of work. While he was wrangling with Chatham, news trucks were parked outside his house for days. Create Email Alert, ***Log In or Grimstad knows what its like to be under a tabloid-like glare. Chatham, an investor in the company since 2009, is its largest creditor. This much is sure: Chatham founder Melchiorre, 51, has a formidable reputation. But just on the outside chance he does come around, would somebody please take his picture and send it to me? Well, this company, Chatham Asset Management, doesnt do a lot that would make it want to call attention to itself. (Another Postmedia creditor, the hedge fund Canso Investment Counsel, is being paid back more quickly based on an earlier agreement.). This website uses cookies to improve your experience while you navigate through the website. Thats because they are losing to him.. The SEC has increased its focus on the valuation of securities across the market, said Jacob Frenkel, a lawyer at Dickinson Wright. So glad that I turned 55 last year and was able to get my 401(k) the hell out of there and roll it into the one at my current employer. He is the founder and principal owner of Chatham. , Bloomberg. A March 2019 Fortune magazine story said Melchiorre, who is either 51 or 52, was raised in Chicago, studied economics at Northwestern and got an MBA from the University of Chicago. Chatham has tried to unload The Enquirer. SEC form, multiple filers or classes of filers, and much more.***. SEC employees have questioned the firm on subjects including its pricing of bonds and conversations with various bond dealers. Snap CEO Evan Spiegel wiped out over $10 million in student loans for an entire graduating class. CHATHAM, NJ Luxury Homes for Sale in Cabris, Provence Alpes Cte D'azur, France The company regrets any distress that may have been caused to the Grimstads by the public filing of the litigation against them, Chatham-controlled iPayment said at the time. That deal still has not closed. The company regrets any distress that may have been caused to the Grimstads by the public filing of the litigation against them, Chatham-controlled iPayment said at the time. Chatham Asset Management is a hedge fund with 13 clients and discretionary assets under management (AUM) of $8,608,297,054 (Form ADV from 2022-03-30). SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for All rights reserved. Chatham haswarnedthat its investments are risky and that a client may lose its entire investment in a troubled company. In early 2018, private equity giant BlackstoneremovedChatham from one of its major investment funds. Melchiorre, 55, owned roughly 70 percent of the company during the relevant period and is the managing member of the general partner entity for each of the funds. After working at investment banking firms Donaldson, Lufkin & Jenrette and Goldman Sachs, he went to Morgan Stanley in 1998, where he worked his way up to heading the firms junk-bond trading group. There are often clauses in agreements between pension funds and hedge funds that give states certain rights and recourse if they believe retirees money has been invested in companies engaging in criminal activity, he said. Yet its recent focus on tough-to-trade investments has given some clients pause, and initially drove off investors such as the Ohio state pension fund. Necessary cookies are absolutely essential for the website to function properly. Your California Privacy Rights/Privacy Policy. During the coronavirus shutdown, Postmedia has made further cuts, laying off 80 employees and closing down 15 community papers. $5,850,800. House in Cabris, Provence-Alpes-Cte d'Azur, France. Seaport Global defended its practices. Postmedia is under investigation by Canadian regulators over a deal with a rival publisher, Torstar, the owner of The Toronto Star, that resulted in the closing of 36 newspapers and the loss of nearly 300 jobs. From shortly after the merger to the end of 2018, McClatchys work force was cut from more than 15,000 full-time employees to around 3,300, according to public filings. The family-owned publisher of The Sacramento Bee and The Miami Herald announced the winner of its bankruptcy sale: Chatham Asset Management, the owner of The National Enquirer. The hedge fund also has officials who serve as directors at AMI. The companys C.E.O., Anthony Melchiorre, doesnt give interviews, and no photo of him is available online. That kind of showing helped the firm attract $300 million from investors this quarter, a person familiar with the matter said. The McClatchy chairman, Kevin S. McClatchy, the great-great-grandson of its founder, has said the companys inability to meet its pension obligations tipped it into bankruptcy.
