Playing tough is the Chatham way. FORTUNE may receive compensation for some links to products and services on this website. 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. When Walt Disney Co. bought The Star and its parent company, Capital Cities/ABC, in 1995, Disney C.E.O. All rights reserved. A year later, 3 grads CA Notice at Collection and Privacy Notice, Do Not Sell/Share My Personal Information. Anthony Melchiorre is the Founder & Managing Member of Chatham Asset Management. That made it one of the best performing bonds in the world at the time. Owning a majority of the approximately $1.2 billion in outstanding principal amount of 11% first lien senior secured notes due 2026, and virtually all of the approximately $439 million in outstanding principal amount of 13% second lien senior secured notes due 2027. (Another Postmedia creditor, the hedge fund Canso Investment Counsel, is being paid back more quickly based on an earlier agreement.). As part of it, Postmedia traded 17 of its papers to Torstar in exchange for 24 Torstar papers. Such wagers have come under increased scrutiny from regulators in the last year. Chatham investors say that even if authorities go after the National Enquirer for allegedly extorting Bezos or for catch-and-kill tactics, American Media is a valuable company, with several magazines it could sell to raise money for creditors. While he was wrangling with Chatham, news trucks were parked outside his house for days. Snap CEO Evan Spiegel wiped out over $10 million in student loans for an entire graduating class. Serving as the lead backstop investor in Vericasts multibillion dollar refinancing transactions in 2020 and 2021. Chatham had the winning bid for the McClatchy Company, the family-run publisher of The Sacramento Bee and other papers. At Hedge Fund That Owns Trump Secrets, Clashes and Odd Bond Math Chatham Asset Management Offers To Acquire R.R. Donnelley For $7.50 Per 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. 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. 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 connection with improper trading of certain fixed income securities. 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. Good writing. Finra, the brokerage industrys main watchdog, subsequently concluded its review, and its unclear what if anything resulted from it. Hedge fund manager Chatham Asset Management and founder Anthony Melchiorre agreed to pay $19.4 million to settle Securities and Exchange Commission charges that the firm improperly traded fixed-income securities, the SEC announced Monday. Tenth Floor CHATHAM ASSET HIGH YIELD OFFSHORE FUND, LTD. CHATHAM ASSET PARTNERS HIGH YIELD FUND, L.P. I love your lead sentence, Fitz. Many hedge funds look to acquire companies that, while they may be failing, still generate a lot of cash. 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. 5.Anthony Melchiorre, age 55, resides in Short Hills, New Jersey. These cookies do not store any personal information. Aiysha Johnson will take the helm of the 13,000-plus member organization following Ralph Albert Thomas' June retirement. They stay away from editorial matters but tend to focus on finding efficient ways to cut costs, according to two of the people. Turnover is calculated by taking the # of new holdings (initial purchases) + the # of positions sold out of (not just reduced) divided by the total # of holdings for the quarter. Activist Investor 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. Subscribe for access to the latest digital and special editions. National Enquirer owner during Trump payoffs charged with bond price Melchiorre also served as the. Sign up for your daily digest of New Jersey News. The SEC has increased its focus on the valuation of securities across the market, said Jacob Frenkel, a lawyer at Dickinson Wright. A first French dpartement of Alpes-Maritimes existed in the same area from 1793 to 1814. The company that is poised to take control of McClatchy and its 29 daily papers doesnt have a website. 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. Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors. The guy who will be drawing the blood, Anthony Melchiorre, apparently is a piece of work. Im always for local ownership whenever possible, and local support, said Sree Sreenivasan, professor of digital innovation at Stony Brook Universitys School of Journalism, sounding a note of caution regarding finance-industry ownership. AMI executives helped Cohen purchase stories that could have hurt Trumps presidential bid, according to theWall Street Journal. Hedge Fund Chatham Settles SEC Case on Improper Bond Trading (1) At least one executivethe one Cohen and Pecker sparred withhas accused the New Jersey firm of market manipulation. The New Jersey office building in which Chatham Asset Management has its office. Chatham Asset Management Increases Offer to Acquire R.R. Ive received well over six figures since retiring in 2006, and I could get another six, if I live long enough and if the PBGC either makes McClatchy pay up or picks up at least two-thirds of the companys pension responsibilities. Despite the companys financial distress, its bonds traded near par until December, and after dropping, have been climbing back. Despite the companys financial distress, its bonds traded near par until December, and after dropping, have been climbing back. Chatham Asset Management . Chatham's and Mr. Melchiorre's trading in the AMI bonds accounted for the vast majority of trading in those securities and therefore over time had a material effect on their pricing, according to the SEC. Named after the leafy suburb where its based, Chatham has posted average annual returns of about 10%, trouncing many of its competitors. That made it one of the best performing bonds in the world at the time. Thats exactly what happened. Although not physically imposing, Melchiorre could be foul-mouthed and loud, and would berate fellow traders as he bopped around the trading floor in his stocking feet. 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. Search Crunchbase. 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. Their bonds, though, havent suffered. 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. Aiysha Johnson will take the helm of the 13,000-plus member organization following Ralph Albert Thomas' June r[], The Englewood-based advisory firm has entered into an agreement to buy Brainard Capital Management of Austin, [], The 29-year-old and conspirators engaged USPS employees to steal the charge cards from the mail in exchange fo[], The CEO of Toorak Capital Partners offers an analysis of the current residential real estate market, the firm'[], Small businesses are the backbone of our economy. The SECs order finds that, from 2016 through 2018, one Chatham-advised client sold certain American Media, Inc. (AMI) bonds while a different Chatham-advised client purchased the same bonds through various broker-dealers. Newsonomics: Six takeaways from McClatchy's bankruptcy Chatham and Melchiorre agreed to pay . Apr 3, 2023. The hedge fund owns about two-thirds of the companys long-term debt. 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 LLC and its founder Anthony Melchiorre have agreed to pay more than $19.3 million to settle charges in connection with improper . Since Chatham took a majority stake in Postmedia, the company has cut its work force, shuttered papers across Canada, reduced salaries and benefits, and centralized editorial operations in a way that has made parts of its 106 newspapers into clones of one another. 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. Within weeks, the notes were back at about par. Anyone can read what you share. NJBIZ, New Jerseys leading business journal, provides 24/7 business news coverage and events honoring top business professionals. As far as leadership goes, I feel like the way they talk about it, were almost operating like a sales agency, not a news service, Mr. Gibson, the union leader, said. 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.. What is the average price for a luxury home in Grasse, France? Thats because they are losing to him.. After several stints at elite firms like Goldman Sachs and Morgan. Chatham is led by Anthony Melchiorre, a Chicago-area native who once worked at Morgan Stanley, where he led the junk bond division. Chatham is led by Anthony Melchiorre, a Chicago-area native who has earned a reputation on Wall Street as a tough negotiator. Donnelley & Sons, McClatchy, Postmedia and Accelerate360. But Mr. MacLeod, the chief executive, acknowledged complaints about the cuts. 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. Offers may be subject to change without notice. State pension funds invested millions in hedge fund that controls 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. (The answer was no, and I retired on June 30, three days after the McClatchy deal closed.). He built his stature as a temperamental money-maker at the white-shoe firm. Alpes Maritimes is part of the Provence-Alpes-Cte d'Azur region. 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. 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. And given the strains in the print-media business, the strong price of the debt is difficult to explain, traders say. Yes, Tony Ridder came to The Star newsroom when KR bought the paper. Ex-99.1 - Sec 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. Both have had roles in Chathams other media company, American Media, the publisher of The National Enquirer and other supermarket tabloids. The ugly litigation with the tech executive was resolved with a less-than-remorseful apology and a multimillion-dollar payday for Grimstad. Over time, Chatham has increased its investment (and sunk its teeth?) Trumps former attorney, Michael Cohen, recentlypleaded guiltyto breaking campaign finance laws stemming from payments he made to women to hide affairs with the former reality TV star and real estate magnate. Chatham Asset Management to Pay $19.3M to Settle SEC Charges. 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. We give you the access and tools to invest like a Wall Street money manager at a Main Street price. In all three cases, Chatham bought most of the subordinated bonds, plus stock. 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. During the coronavirus shutdown, Postmedia has made further cuts, laying off 80 employees and closing down 15 community papers. 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. Thats just not how bond math works, said Michael Terwilliger, a portfolio manager at Resource Credit Income Fund. 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. With roots going back to 1857, McClatchy, a consistent winner of top journalism awards, was one of the last major family-run news publishers. The hedge fund is run by Anthony Melchiorre, a GOP donor who reportedly met with the president and AMI CEO David Pecker at the White House soon after Trump took office. This website uses cookies to improve your experience. When completed, an email will be sent to the email address you specify Position: Managing Member/Portfolio Manager, Company/Fund Name: Chatham Asset Management, LLC, Address: 26 Main Street, Suite 204, Chatham, NJ, 7928, United States. Tony Ridder came to the newsroom and spoke, although he was such a stone of a personality I dont specifically remember it. Chatham hasnt been accused of wrongdoing by authorities, and the fund had no comment on its interactions with federal inspectors. From 2004 to 2019, roughly half of all newspaper jobs in the United States were eliminated, according to a University of North Carolina study. Well, this company, Chatham Asset Management, doesnt do a lot that would make it want to call attention to itself. Sports coverage has been trimmed. In that sense, they are perfect victims for scavengers. Non-U.S. residents banned from purchasing tickets to Maple Leafs road games in Florida, Nearly one-third of Canadians worried about their vehicle getting stolen amid spike in thefts, Owe money to the CRA this tax season? 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. Performance numbers calculated through 2022-05-16. Yet, over the years questions have swirled around Chatham. Chatham Asset Management, LLC Anthony Melchiorre Managing Member - Form 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. In 2013, former New Jersey Gov. And in 2006, when McClatchy bought out Knight Ridder, McClatchy C.E.O. Hes a street fighter, said Mike Rankowitz, his boss at Morgan Stanley. Whalewisdom has at least 9 13F filings, 19 13D filings, 29 13G filings, and 127 Form 4 filings. Earlier this month, Alden secured a third seat out of seven on the Tribune Publishing board as it seemed to inch closer to taking control of that company. As a subscriber, you have 10 gift articles to give each month. Chatham hasnt been accused of wrongdoing by authorities, and the fund had no comment on its interactions with federal inspectors. 2023 Fortune Media IP Limited. The consultant reviewed Chatham's trading annually for compliance with applicable laws and did not alert the firm to any issues. 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. CHATHAM ASSET MANAGEMENT, LLC Top 13F Holdings - WhaleWisdom.com I can almost guarantee you there will be staff cuts at most or all of those newspapers. 6LinkedIn 8 Email Updates. Currently investing in Vericasts term loan facility due 2026. Price swings on the trades described in the lawsuit marked the biggest-ever percentage changes in those securities, data reviewed by Bloomberg show. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It doesnt produce a product or render a significant service to society. He is the founder and principal owner of Chatham. After stints at Donaldson, Lufkin & Jenrette and Goldman Sachs Group Inc., Melchiorre landed at Morgan Stanley in 1998 where he rose to head the junk-bond trading group. This story was co-published with MapLight and Capital & Main. Anthony Melchiorre has an ownership stake in Chatham Asset Management, LLC of between 50% and 75%. Alden controls roughly 200 outlets through its newspaper chain, MediaNews Group. Grimstad claimed Chatham artificially drove down the price of the bonds by almost 30 percent in a single trade, effectively blocking a debt-restructuring effort so it could capture control of the company. He set up his hedge fund in Chatham, N.J., in 2002. The notes dont pay regular interest in cash, a sign of their inherent riskiness. , Bloomberg. What it does, apparently, is make its clients lots of money. Just sad. 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. 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. What a great word! They wanted to kill a lawsuit by the former head of another Chatham company. Chatham Hedge Fund Has the Winning Bid for McClatchy Newspapers 2023 BridgeTower Media. New Jersey hedge fund, founder settle SEC charges over improper trades 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. Luxury Homes for Sale in Cabris, Provence Alpes Cte D'azur, France. Blue Sky Digital Outdoor Advertising Fund Fund Data, Sarasin Ie Global Equity Opportunities (Usd) Fund Data, Themelios Ventures Ii-A, L.P. Fund Data. This post has been updated with additional information from Calpers and the Ohio pension system. A spokeswoman for Cohen declined to comment, and a spokesman for American Media and Pecker didnt respond to requests for comment. Then theres American Media. There, they tried to prevent him from pursuing a lawsuit accusing Chatham-backed iPayment and its board member Pecker of ousting him unfairly. The owner, (whose only hope to save journalism in this second or third tier town), is digital publishinghas no web site! That kind of showing helped the firm attract $300 million from investors this quarter, a person familiar with the matter said. Necessary cookies are absolutely essential for the website to function properly. email address below and choose 'Submit'. Traders have privately criticized what they see as lofty valuations of illiquid securities. Although not physically imposing, Melchiorre could be foul-mouthed and loud, and would berate fellow traders as he bopped around the trading floor in his stocking feet. STAY CONNECTED SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for In its year-end financial results released March 3, Vericast reported 2021 consolidated net revenues decreased 2% and total adjusted EBITDA increased 6.2% compared with 2020. They give us a lowdown on how much money were losing and the need for cost cutting, but then they go and give these big bonuses. But Im not now. Chatham is not a newcomer to the news industry. Chatham has been restructuring their debt to give them more time. (Bloomberg) -- The threat was blunt: Back off, or there will be trouble. Chatham Asset Management - CB Insights 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. 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. Chathams tabloid publisher possesses a treasure trove of Trumps secrets, his former fixer Cohen told Congress last month. The number of journalists at its Vancouver papers the Vancouver Sun and The Province has been cut in half, according to Mr. Gibson. (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.). It was a lucrative move. 13 Beds 11 Baths 5920 sqft. CHATHAM, NJ 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 CEO Anthony Melchiorre and McClatchy CEO Craig Forman assuming Forman stays in place both believe in the . Its bonds staged an improbable rally last year, charting a steady climb over 50% from 80 to 125 cents on the dollar. Managers Inv. The guy who will be drawing the blood, Anthony Melchiorre, apparently is a piece of work. 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.