What a perfect synecdoche. New Jersey, which has generated a more-than 12 percent annualized return on its investment, is entitled to withdraw $355 million from one of Chathams funds at the end of this year. Hedge Fund The $1.4 billion pension plan, created 75 years ago, was intended to provide money to more than 24,000 current and future retirees. The Securities and Exchange Commission today charged New Jersey-based Chatham Asset Management LLC and its founder, Anthony Melchiorre, in connection with improper trading of certain fixed income securities. Hedge funds and private equity firms entered newsrooms during the Great Recession, when readers were migrating toward digital sources of news and local newspapers were losing value. 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.. The firm and its founder, Anthony Melchiorre, have a reputation for hard-edged business. In recent months, Postmedia closed approximately 15 community publications and laid off 120 employees in response to the Covid-19 pandemic, The Toronto Star reported. The private equity fund Fortress Investment Group controls the largest American newspaper chain, Gannett, which publishes USA Today, The Arizona Republic and 250 other dailies. Chatham has been restructuring their debt to give them more time. As a subscriber, you have 10 gift articles to give each month. FORTUNE may receive compensation for some links to products and services on this website. This is all very bad news for The Kansas City Star and the other McClatchy papers. The SECs investigation was conducted by Daphne Downes, Brian Fitzpatrick, and Lindsay S. Moilanen, with assistance from Carina Chambarry and Raymond Wolff of the SECs Division of Economic and Risk Analysis. Chatham Asset Management Increases Offer to Acquire R.R. 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. SEC form, multiple filers or classes of filers, and much more.***. Good writing. They are scrappy, and they arent afraid of litigation to defend their investments, said Leon Cooperman, a recently retired hedge fund mogul who is a Chatham investor and part owner of American Media, the Enquirers publisher. The deal was partly financed by one private equity fund, Apollo Global Management, and Gannett is now controlled by another private equity fund, Fortress Investment Group, which is owned by the Japanese conglomerate SoftBank. the MV of securities sold, whichever is less, You know a little about ledes (leads) yourself. If asked to vote, I can assure you I will be voting for us to divest, he said. Activist Investor The hedge fund owns about two-thirds of the companys long-term debt. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Main Office Tony Ridder came to the newsroom and spoke, although he was such a stone of a personality I dont specifically remember it. The ugly litigation with the tech executive was resolved with a less-than-remorseful apology and a multimillion-dollar payday for Grimstad. 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. For the sake of McClatchys approximately 2,800 employees (for comparisons sake, The Star alone had more than 2,000 employees about 20 years ago), Im sorry to say things could get a lot worse before theres any chance of getting better. Blue Sky Digital Outdoor Advertising Fund Fund Data, Sarasin Ie Global Equity Opportunities (Usd) Fund Data, Themelios Ventures Ii-A, L.P. Fund Data. (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.). Chatham investment firm moves to acquire Vericast for $2.85B. Chatham had the winning bid for the McClatchy Company, the family-run publisher of The Sacramento Bee and other papers. --With assistance from Neil Weinberg and Matt Robinson. As a subscriber, you have 10 gift articles to give each month. Melchiorre and his. The matter has been resolved and we are focused on generating returns for our investors.". Revenue has dropped an average of 10 percent a year since 2016. Melchiorre also served as the. Chatham and Melchiorre agreed to pay . Even with the cuts it has endured over the past 15 years, The Bee remains the most significant source of original reporting and enterprise in our community, Sacramentos mayor, Darrell Steinberg, wrote in a May letter to the bankruptcy court. Hedge funds are certainly profit-oriented, Mr. Longo said. Many hedge funds look to acquire companies that, while they may be failing, still generate a lot of cash. Apr 3, 2023 11:40 AM PDT. 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. No, I dont think hell be visiting the newsroom and talking about Chathams plans for the paper. Something other than fundamentals are playing a huge factor in those bonds., In response to questions about the prices, Melchiorre sent a statement through a representative: We have tremendous conviction in our fundamental thesis on late stage media consolidation in North America and competitors are free to express opposing views.. Just sad. Chatham said at the time that the allegations were baseless and without merit. With a strategy that led to deep layoffs at The Denver Post and other publications, it has made money in an ailing business while angering journalists and press advocates who accuse the firm of diminishing local news publications and doing a disservice to the communities they cover. Use of this website is subject to its Terms of Use | Privacy Policy | Your California Privacy Rights/Privacy Policy | Do Not Sell My Info/Cookie Policy. A spokesman for the Ohio pension system said Thursday that the state asked for its money to be withdrawn from the Chatham fund in 2015; the money was redeemed in 2017. The deal happened so quietly that Postmedias own financial news site described it as a debt restructuring in a report that included a single mention of Chatham as one of the investors.. But opting out of some of these cookies may have an effect on your browsing experience. He built his stature as a temperamental money-maker at the white-shoe firm. House in Cabris, Provence-Alpes-Cte d'Azur, France. From 2016 through 2018, one Chatham-advised client sold certain American Media Inc. bonds while a different Chatham-advised client purchased the same bonds through various broker-dealers, according to the SEC. Anthony Ralph Melchiorre is an employee with Chatham Asset Management, LLC, a hedge fund company. . This will schedule a job to export all requested 13f holdings data for this filer. New Jersey, which has generated a more-than 12% annualized return on its investment, is entitled to withdraw $355 million from one of Chathams funds at the end of this year. And your word synedoche drove me to the online dictionary. 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. When completed, an email will be sent to the email address you specify In 2013, former New Jersey Gov. Pressure has been building. It declined to comment further. Chatham engaged in these trades to address portfolio constraints such as industry or issuer fund concentration limits, meet investor redemptions, and allocate capital inflows and outflows, the SEC noted. Sue, Chatham lawyers warned, and well drag your family into this, according to court testimony. Despite the losses, Postmedia has managed to shunt most of its cash toward paying off its heavy debt load, which ultimately will benefit Chatham. In that same period, the editorial ranks at The National Post, its flagship paper, have been reduced by about a third, according to three of the people. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. Choose your news we will deliver. It declined to comment further. 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. Chatham Asset Management to Pay $19.3M to Settle SEC Charges. 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. Chicago, IL 60601, Court backs SEC in lawsuit challenging proxy-rule rescission, Labor Department addresses FAQs for multiemployer pension plans receiving SFA, U.S. regulators propose strengthening oversight of non-banks, Sponsored Content: EDHEC Climate and Finance Special, The Institutional Investors Guide to ESG Investing, The Plan Sponsor's Guide to Retirement Income, 2023 Defined Contribution East Conference, SEC's rules moving too fast, industry says, SEC proposes requiring electronic submissions for nearly all forms, SEC seeks $2.4 billion in funding to boost staff numbers. The next year, Seaport received internal complaints that brokers there agreed to buy bonds from Chatham with the promise the hedge fund would repurchase them at higher prices, according to people with knowledge of the situation. His behavior infuriated some senior executives, according to former colleagues. Chatham is led by Anthony Melchiorre, a Chicago-area native who has earned a reputation on Wall Street as a tough negotiator. In 2016, the Financial Industry Regulatory Authority opened a review of the brokerage Seaport Global Securities that, while focusing on that firm, included an examination of its relationship with Chatham, people familiar with the matter said. Investment Advisor Wall Streets main regulator has been looking into opaque markets since the financial crisis, uncovering a wide swath of bad behavior from lying salespeople to bogus quotes from brokers. 5.Anthony Melchiorre, age 55, resides in Short Hills, New Jersey. Under Republican governors, the two states committed at least $625 million of pension cash into Chatham Asset Management, a high-risk hedge fund that has taken control of theNational Enquirers parent company, American Media Inc., which is at the center of the federal investigation into President Donald Trumps 2016 campaign. Suite 3200 He built his stature as a temperamental money-maker at the white-shoe firm. SEC employees have questioned the firm on subjects including its pricing of bonds and conversations with various bond dealers. The New Jersey office building in which Chatham Asset Management has its office. Find more info on AllPeople about Anthony Melchiorre and Chatham Asset Management, as well as people who work for similar businesses nearby, colleagues for other branches, and more people with a similar name. The new, supersize version of Gannett resulted from a merger last year between Gannett and the parent of GateHouse Media. Chathams track record as an owner of a major newspaper chain is grim, according to 10 current and former Postmedia employees who spoke with The New York Times on the condition of anonymity because they feared retaliation. The hedge fundfinalized its dealto buy an ownership stake in AMI in the summer of 2014. John Longo, a professor at Rutgers Business School, said such ownership did not necessarily mean a disregard for journalism. Anyone can read what you share. As a family-owned business headquartered in New Jersey, Trinity Solar is excited to interact with families and members of []. , Bloomberg. After several stints at elite firms like Goldman Sachs and Morgan Stanley, he was let go from Morgan Stanley in 2002 as part of a sweeping round of layoffs. Within weeks, the notes were back at about par. It even offered lower yields than some blue-chip companies. McClatchys troubles can be traced to 2006, when it bought its much larger rival, Knight Ridder, then the second-largest newspaper chain in the United States, for $4.5 billion, plus the assumption of $2 billion in debt. Found 4 colleagues at Chatham Asset Management. As a result, during the relevant period, the NAVs of Chathams clients were higher than they would have been if the subject trades were removed from the market for the AMI bonds, which, in turn, resulted in higher fees being charged to the clients. There, they tried to prevent him from pursuing a lawsuit accusing Chatham-backed iPayment and its board member Pecker of ousting him unfairly. "As our order finds, Chathams trading in AMI bonds had the effect of increasing the prices of those generally illiquid securities in a way that was disconnected from economic reality," said Sanjay Wadhwa, Deputy Director of the SECs Division of Enforcement. Thats because they are losing to him.. Cohens assignment: Get Carl Grimstad, the recently fired CEO of payments processor iPayment Holdings, to the table. With McClatchy, the hedge fund also designed a trade aimed at reaping a windfall through credit-default swaps. I would bet, in fact, that not one Star employee not even president-publisher-secretary and head of security Mike Fannin will ever see him. While he was wrangling with Chatham, news trucks were parked outside his house for days. Even before the pandemic, Postmedia saw a falloff in advertising, once the lifeblood of newspapers. Your California Privacy Rights/Privacy Policy. 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. But Melchiorre? . Chatham and Melchiorre consented to the SECs order, without admitting or denying its findings, that they violated Section 206(2) of the Investment Advisers Act of 1940, and that they aided and abetted and caused violations of the Investment Company Act of 1940. In the same period, it spent nearly $127 million on debt payments. In recent months it put together the bid that has been declared the winner in a U.S. Bankruptcy Court auction supervised by Judge Michael E. Wiles, a McClatchy spokeswoman said on Sunday. The order further finds that these trades were executed at prices Chatham and Melchiorre proposed and had the effect of increasing the price of the AMI bonds at a significantly higher rate than the prices of similar securities. Chatham was the favorite in the McClatchy auction, but the New York hedge fund Alden Global Capital expressed strong interest last week, when a lawyer representing the firm said at a bankruptcy hearing that Alden was prepared to top any other bid. Chatham itself has been undergoing its first ever exam by the SECs inspections division, according to people familiar with the 16-year-old firm. Chatham Asset Management LLC and its founder Anthony Melchiorre have agreed to pay more than $19.3 million to settle charges in connection with improper . (The answer was no, and I retired on June 30, three days after the McClatchy deal closed.). of the acquiring company to visit the newsrooms of the papers being bought and to speak about the companys plans for the future and answer employees questions. Chatham Asset Management provides investment advisory services. It has made money in an ailing business partly by cutting the number of reporters and editors at The Denver Post and other publications, moves that have angered journalists and press advocates who accuse the firm of diminishing local news coverage. 13 Beds 11 Baths 5920 sqft. "We remain vigilant in rooting out such misconduct in the marketplace, including in the fixed income sector, where investments can be less liquid.". They are scrappy, and they arent afraid of litigation to defend their investments, said Leon Cooperman, a recently retired hedge fund mogul who is a Chatham investor and part owner of American Media, the Enquirers publisher. Apr 3, 2023. 685 Third Avenue After Grimstad filed his suit, the Chatham camp countered, claiming Grimstad had used company money to pay a Las Vegas escort $4,000 for sexual activities and later hired her and her mother. Along with the public pension funds, four other private pension fundsincluding those for Ford and Toyota Motors employeeshave had investments with Chatham, according to financial research firm Preqin. Its a fair question.". Such wagers have come under increased scrutiny from regulators in the last year. The merger took place in November 2017, about a year after Chatham took majority ownership. Although not physically imposing, the Fortune story said, Melchiorre could be foul-mouthed and loud, and would berate fellow traders as he bopped around the trading floor in his stocking feet.. AMI represents a large portion of Chathams portfolio. SEC employees have questioned the firm on subjects including its pricing of bonds and conversations with various bond dealers. STAY CONNECTED Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. Yet, over the years questions have swirled around Chatham. Recent cases brought by the regulator show its trying to ensure that investors have a full and fair understanding of how instruments in the market are being priced.. By Sabela Ojea. Chatham Asset Management and its founder, Anthony Melchiorre, have agreed to settle charges they violated U.S. laws designed to protect investors when they bought and sold bonds in. They also agreed to pay civil penalties of $4,400,000 and $600,000, respectively. for Q1 2022: commodity pool operator or commodity trading advisor, Percentage of assets under management,Performance-based fees, CHIEF OPERATING OFFICER/CHIEF COMPLIANCE OFFICER, MEMBER/CHIEF OPERATING OFFICER/CHIEF COMPLIANCE OFFICER, MEMBER/CHIEF FINANCIAL OFFICER/CHIEF COMPLIANCE OFFICER, LIMITED PARTNER CHATHAM ASSET PARTNERS, LP, MANAGING MEMBER CHATHAM ASSET PARTNERS GP II, LLC, CHATHAM ASSET PRIVATE DEBT AND STRATEGIC CAPITAL FUND III, LP, CHATHAM ASSET PRIVATE DEBT AND STRATEGIC CAPITAL OFFSHORE FUND III, LP, CHATHAM ASSET PRIVATE DEBT AND STRATEGIC CAPITAL FUND, LP, Other Private Fund HYBRID DEBT AND STRATEGIC CAPITAL FUND. The companys C.E.O., Anthony Melchiorre, doesnt give interviews, and no photo of him is available online. These cookies do not store any personal information. This category only includes cookies that ensures basic functionalities and security features of the website. Price swings on the trades described in the lawsuit marked the biggest-ever percentage changes in those securities, data reviewed by Bloomberg show. Its pretty frustrating, said Brian Gibson, the president of the local union that represents 140 members of the editorial staff at Postmedias Vancouver papers. In October 2016, a New Jersey hedge fund assumed ownership of Canadas largest newspaper chain with very little fanfare. "As a result, during the relevant period, the NAVs of Chatham's clients were higher than they would have been if the subject trades were removed from the market for the AMI bonds, which, in turn, resulted in higher fees being charged to the clients," the SEC said. Finally, they agreed to prohibitions from serving in certain positions in the investment industry, pursuant to the Investment Company Act. Sports coverage has been trimmed. Last week, that kind of financial maneuvering reappeared in another major newspaper deal, when Chatham emerged as the winning bidder in a bankruptcy auction for the McClatchy Company, a chain with 30 media outlets including The Miami Herald, The Kansas City Star and The Sacramento Bee. That money was part of a deal the company had struck with Karen McDougal, a Playboy model who said she had an affair with Donald J. Trump. The hedge fund is run by Anthony Melchiorre, a GOP donor whoreportedlymetwith the president and AMI CEO David Pecker at the White House soon after Trump took office. Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. 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. Vericast recently announced several growth initiatives, including investing in technology and hiring for more than 250 new positions across the organizationits largest investments in innovation and employees since the companys 2020 launch. Federal regulators have been asking questions, too. Chatham has been restructuring their debt to give them more time. 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. In all three cases, Chatham bought most of the subordinated bonds, plus stock. Chatham Asset Management, LLC (together with its affiliates, "we" or " Chatham "), is a New Jersey -based credit investment firm focused on rigorous, fundamentally-based research, with. Few people noticed, including some of the chains employees. In the interest letter to Vericast CEO John O'Malley, Chantham Managing Member Anthony Melchiorre detailed CAM's longstanding investments in the company, including: Serving as the lead backstop. Chatham is led by Anthony Melchiorre, a Chicago-area native who once worked at Morgan Stanley, where he led the junk bond division. All rights reserved. The regulator declined to comment. This post has been updated with additional information from Calpers and the Ohio pension system. The average price per square meter is $528/sqft. AMI gave$10,000 to a super PACsupporting Christies 2016 presidential bid, and Mother Jones reported that ChristieplacedPecker on his campaign leadership team. Those investments amounted to a bet that the companies would acquire competitors and cut costs. The companys main office is on the second floor of a nondescript, two-story office building in Chatham, NJ, 28 miles west of the Manhattan skyscrapers. Wall Streets main regulator has been looking into opaque markets since the financial crisis, uncovering a wide swath of bad behavior from lying salespeople to bogus quotes from brokers. Last year, barely three months before Christie left office, his administrationsteeredanother $200 million to another Chatham vehicle. And as it happened, the hedge fund owned the tabloid, the National Enquirer, that he had just used to try and catch and kill stories about the future president. Its no wonder Chathams side would enlist Cohen, long known for his doggedness on behalf of Trump.
anthony melchiorre chatham asset management