Anthony Melchiorre - Managing Partner & Founder @ Chatham Asset 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 company that is poised to take control of McClatchy and its 29 daily papers doesnt have a website. Chatham said at the time that the allegations were baseless and without merit. 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. This is all very bad news for The Kansas City Star and the other McClatchy papers. Yet, over the years questions have swirled around Chatham. the MV of securities sold, whichever is less, As you are aware, Chatham Asset Management, LLC (together with its affiliates, "we" or "Chatham") is a New Jersey-based credit investment firm with extensive investments in the print media. Hedge Fund Chatham, Founder Melchiorre Pay $19M in SEC Case Over Bond I can almost guarantee you there will be staff cuts at most or all of those newspapers. This much is sure: Chatham founder Melchiorre, 51, has a formidable reputation. 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. That offer included the debt assumed by the hedge fund and its partners. 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. Those investments amounted to a bet that the companies would acquire competitors and cut costs. All Rights Reserved. House in Cabris, Provence-Alpes-Cte d'Azur, France. 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 . Subscribe to WhaleWisdom to view all filing data Its bonds staged an improbable rally last year, charting a steady climb over 50 percent from 80 to 125 cents on the dollar. 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. 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. 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. It doesnt employ a lot of people, and I doubt if it sponsors arts organizations and gives to charities in Chatham. 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. The SEC order found that these trades were executed at prices Chatham and Mr. 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. Few people noticed, including some of the chains employees. Quantifying sustainability the numbers, the data, and the people, Valuing Banks: Hidden Losses Versus Assets, Research for Institutional Money Management, Global Fixed Income: Volatility and Uncertainty Here to Stay, For institutional investors, ETFs can make meeting liquidity needs easier, Gold: the most effective commodity investment, 2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios, Ten ways retirement plan professionals add value to plan sponsors. 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.. I cannot talk on behalf of the entire SIC, but I will be doing everything in my power to convince a majority to vote the same way.. Search Crunchbase. In April, the company said it had received a Chatham-led bid worth more than $300 million. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. The threat was blunt: Back off, or there will be trouble. Chatham owns the majority of Postmedia shares and the debt, but because of a Canadian law that limits non-Canadian control of media properties, it cannot exercise full control over the business. Chatham is not a newcomer to the news industry. The firms assets have doubled in the past three years. Two other old-line media investments, Postmedia Network Canada Corp. and McClatchy Co., have become central to Chatham and its thesis that itll make money in an industry others are fleeing. Serving as the lead backstop investor in Vericasts multibillion dollar refinancing transactions in 2020 and 2021. By clicking Accept, you consent to the use of ALL the cookies. Cohens assignment: Get Carl Grimstad, the recently fired CEO of payments processor iPayment Holdings, to the table. Long-term clients include the state pension fund of Chathams home state, New Jersey. Chatham hasnt been accused of wrongdoing by authorities, and the fund had no comment on its interactions with federal inspectors. SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for 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. 1 Twitter 2 Facebook 3RSS 4YouTube And given the strains in the print-media business, the strong price of the debt is difficult to explain, traders say. It doesnt produce a product or render a significant service to society. Under Chatham, Postmedia has consolidated editorial operations to create what company insiders call common pages. National and political coverage is often prepared at a central site, and content from The National Post is inserted into newspapers across Postmedia. Following the successful launch of its Newport Centre location last fall, the brand recently unveiled its newest restaurant d[], JLL secured a long-term lease for 3,400 square feet for Rubinstein Plastic Surgery Center LLC, a cosmetic surgery practice, m[], The CEO of Toorak Capital Partners offers an analysis of the current residential real estate market, the [], Video Replay: NJBIZ Leaders In Digital Technology 2023, Congratulations to the 2023 NJBIZ Leaders in Law honorees (updated), Introducing NJBIZ Connect Your Guide to New Jersey Businesses, NJBIZ unveils 2023 Leaders in Finance Lifetime Achievement Honoree, Introducing the 2023 NJBIZ Leaders in Finance honorees (updated). Subscribe to Well Adjusted, our newsletter full of simple strategies to work smarter and live better, from the Fortune Well team. Its no wonder Chathams side would enlist Cohen, long known for his doggedness on behalf of Trump. On Friday he ordered remaining ones back to the office. 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. Chatham itself has been undergoing its first ever exam by the SECs inspections division, according to people familiar with the 16-year-old firm. Internal hedge fund records from late 2017 show that AMI investments comprised 23 percent of the Chatham Asset Partners High Yield Funds portfolio. Moreover, the SEC found that Chatham and Mr. Melchiorre calculated the net asset values of their client funds' holdings using pricing data that was based, in part, on the trading prices of the securities. Thats because they are losing to him.. Position: Managing Member/Portfolio Manager, Company/Fund Name: Chatham Asset Management, LLC, Address: 26 Main Street, Suite 204, Chatham, NJ, 7928, United States. But many dailies remained sources of reliable cash flow, making them attractive investments for owners focused on maximizing returns.
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