While he was wrangling with Chatham, news trucks were parked outside his house for days. That deal still has not closed. The hedge fund has become a major player in the news industry. 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. The firm and its founder, Anthony Melchiorre, have a reputation for hard-edged business. Cohens assignment: Get Carl Grimstad, the recently fired CEO of payments processor iPayment Holdings, to the table. 685 Third Avenue 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. Anthony Melchiorre, Chatham Asset Management, LLC: Profile and Biography - Bloomberg Markets Bloomberg Terminal Demo Request Bloomberg Connecting decision makers to a dynamic network of. Resources. (Bloomberg) -- The threat was blunt: Back off, or there will be trouble. Chatham has been restructuring their debt to give them more time. 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. Chatham said at the time that the allegations were baseless and without merit. Sign-up In all, the two companies closed 36 of the 41 newspapers that were part of the unusual deal, resulting in 291 job losses. Any McClatchy employees hoping that Chatham might not be as bad as the hedge fund Alden Global Capital, which has decimated the Denver Post and other papers in its stranglehold, should consider this: Chatham is the majority owner of American Media, which owns the tabloid National Enquirer which hardly recommends Chatham as a potential restorer of the 29-paper chain to the newspaper industrys top ranks. Chatham Asset Management - CB Insights Managers Inv. AMIhas deniedit helped Trumps campaign, although Pecker was recently granted immunity as part of the Cohen probe. From 2004 to 2019, roughly half of all newspaper jobs in the United States were eliminated, according to a University of North Carolina study. 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. 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.. Chatham Asset Management Increases Offer to Acquire R.R. Chatham hasnt been accused of wrongdoing by authorities, and the fund had no comment on its interactions with federal inspectors. John Longo, a professor at Rutgers Business School, said such ownership did not necessarily mean a disregard for journalism. 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. SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for Former FEC commissioner Trevor Potter, the head of the nonprofit Campaign Legal Center,last week said the situation presents a serious legal problem for AMI. If those legal troubles end up depressing the market value of AMI, teachers, firefighters, cops and other public employees also could potentially suffer losses at a time when their pension funds are alreadyfacingshortfalls. Sue, Chatham lawyers warned, and well drag your family into this, according to court testimony. 2023 BridgeTower Media. Powered and implemented by Interactive Data Managed Solutions. 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. It doesnt employ a lot of people, and I doubt if it sponsors arts organizations and gives to charities in Chatham. During that time, it invested relatively little, about $5.4 million, to try to improve the business. Chatham had waited patiently for Thursday, and now its in the catbird seat, waiting for the Chapter 11 bankruptcy proceedings to play out and then take charge. Snap CEO Evan Spiegel wiped out over $10 million in student loans for an entire graduating class. 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. Chathams and Melchiorres 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. 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. Chatham advisory firm, founder will pay $19M to settle charges, SEC Homes for sale in Grasse, France have an average listing price of $1,650,490 and range in price between $498,470 and $19,828,038. Anyone can read what you share. 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. The number of journalists at its Vancouver papers the Vancouver Sun and The Province has been cut in half, according to Mr. Gibson. The finance industry is also a key component of the largest American newspaper chain, Gannett, which publishes USA Today, The Arizona Republic and 250 other dailies. Create Email Alert, ***Log In or Found 4 colleagues at Chatham Asset Management. The matter has been resolved and we are focused on generating returns for our investors.". 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. 13F filing from CHATHAM ASSET MANAGEMENT, LLC, enter your Yet its junior bonds offer yields comparable to more senior securities. 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. 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. Chatham Hedge Fund Has the Winning Bid for McClatchy Newspapers 1 Twitter 2 Facebook 3RSS 4YouTube 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. CHATHAM ASSET HIGH YIELD MASTER FUND, LTD. CHATHAM ASSET PRIVATE DEBT AND STRATEGIC CAPITAL OFFSHORE FUND II, LP, CHATHAM ASSET PRIVATE DEBT AND STRATEGIC CAPITAL FUND II, LP. The guy who will be drawing the blood, Anthony Melchiorre, apparently is a piece of work. Choose your news we will deliver. Its pretty frustrating, said Brian Gibson, the president of the local union that represents 140 members of the editorial staff at Postmedias Vancouver papers. 2023 Fortune Media IP Limited. . Cohens involvement was detailed by people with knowledge of the talks. When completed, an email will be sent to the email address you specify Postmedia, where Pecker sat on the board until last August, has posted annual losses for most of the past decade. Those zero-coupon bonds maturing in 2024 offered lower yields than five-year U.S. government bonds over several months last year. Few people noticed, including some of the chains employees. It doesnt produce a product or render a significant service to society. Chatham is a hedge fund, and, like most hedge funds, it is interested in just one thing: Big bucks. Chatham Asset Management, a New Jersey-based hedge fund, and its founder, Anthony Melchiorre, have agreed to pay a $19.3 million fine for tampering with the sale process for bonds of. They wanted to kill a lawsuit by the former head of another Chatham company. 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. The examination that led to the investigation was conducted by members of the Division of Examinations' Private Funds Unit, including Jennifer Duggins, Christopher Marino, and Michael Collins. Even before the pandemic, Postmedia saw a falloff in advertising, once the lifeblood of newspapers. divided by the total MV of the fund. Many hedge funds look to acquire companies that, while they may be failing, still generate a lot of cash. We are deeply concerned that this venerable newspaper chain which has won 54 Pulitzer Prizes will now transfer to the ownership of a hedge fund more known for its drive to maximize profits than for its commitment to producing quality journalism, said Ms. Needham, who is a member of the committee of unsecured creditors in McClatchys bankruptcy case. 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). For the low-profile Chatham, American Media has become a high-profile headache. Apr 3, 2023. John Kasichs appointeescommitted$125 million to Chatham. Activist Investor Well, this company, Chatham Asset Management, doesnt do a lot that would make it want to call attention to itself. 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. Such wagers have come under increased scrutiny from regulators in the last year. STAY CONNECTED Chatham is led by Anthony Melchiorre, a Chicago-area native who once worked at Morgan Stanley, where he led the junk bond division. 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. Melchiorre also served as the. The information you requested is not available at this time, please check back again soon. In a statement, a Chatham spokesman said the company was pleased with the outcome of the auction, adding, Chatham is committed to preserving newsroom jobs and independent journalism that serve and inform local communities during this important time.. Your California Privacy Rights/Privacy Policy. Named after the leafy suburb where its based, Chatham has posted average annual returns of about 10 percent, trouncing many of its competitors. Location Chatham, New Jersey, United States; Regions Greater New York Area, East Coast, Northeastern US; Jay Youngdahl, a former Harvard researcher who has served as a steelworkers pension trustee, said state officials may be able to take action to try to protect retiree investments. The announcement, which signals an end to 163 years of family ownership, underlines the growing influence of the finance industry on American newspapers. What's the difference between a CRA tax review and audit? 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. Chatham itself has been undergoing its first ever exam by the SECs inspections division, according to people familiar with the 16-year-old firm. How do I update this listing? Offers may be subject to change without notice. No, I dont think hell be visiting the newsroom and talking about Chathams plans for the paper. 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. Over that time, Chatham has sunk even more money into one of its most controversial investments: National Enquirer parent American Media, which accounts for about 16 percent, or $400 million, of the $2.5 billion that Chatham manages in its main fund and related accounts. 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. In 2013 and 2014, an Ohio pension system partially controlled by Gov. CHATHAM, NJ (One of the people whom Chatham installed on the Postmedia board was Daniel Rotstein, a consultant for American Media.). . 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. Download 13F Summary His behavior infuriated some senior executives, according to former colleagues. In all three cases, Chatham bought most of the subordinated bonds, plus stock. Chatham has tried to unload The Enquirer. 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. He set up his hedge fund in Chatham, N.J., in 2002. 130 E. Randolph St. Its bonds rarely change hands. An SEC spokesman declined to comment. Shortly after, Postmedia announced it would shut down all 24 newsrooms it had acquired, except for one, according to public filings. 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. 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. Pressure has been building. Freelance budgets have shrunk at Postmedia, and travel expenses have been severely curtailed, the people said. That made it one of the best performing bonds in the world at the time. Sign up and get the best of News delivered straight to your email inbox, free of charge. The merger took place in November 2017, about a year after Chatham took majority ownership. Photographer: Luke Sharrett/Bloomberg In the last two fiscal years that ended in August, Postmedia booked losses totaling about $40 million in Canadian dollars. Under Hedge Fund Set to Own McClatchy, Canadian Newspapers Endured Big We also use third-party cookies that help us analyze and understand how you use this website. His behavior infuriated some senior executives, according to former colleagues. 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. Anthony Melchiorre has an ownership stake in Chatham Asset Management, LLC of between 50% and 75%. Just sad. Those investments amounted to a bet that the companies would acquire competitors and cut costs. A Chicago-area kid who studied economics at Northwestern and got an MBA from the University of Chicago, his high-toned education didn't reduce the intensity of the former high-school football star. It declined to comment further. The guy who will be drawing the blood, Anthony Melchiorre, apparently is a piece of work. New Jersey hedge fund, founder settle SEC charges over improper trades 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. Its bonds staged an improbable rally last year, charting a steady climb over 50 percent from 80 to 125 cents on the dollar. Chatham and the Enquirers publisher, David Pecker, had turned to Trumps fixer as a mediator. 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. In October 2016, a New Jersey hedge fund assumed ownership of Canadas largest newspaper chain with very little fanfare. Chatham and Melchiorre agreed to pay . Contact. 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. 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. Anyone can read what you share. An award-winning team of journalists, designers, and videographers who tell brand stories through Fast Company's distinctive lens, The future of innovation and technology in government for the greater good, Fast Company's annual ranking of businesses that are making an outsize impact, Leaders who are shaping the future of business in creative ways, New workplaces, new food sources, new medicine--even an entirely new economic system. Gary Pruitt came to the newsroom. The firms assets have doubled in the past three years. Californias pension fund also has a $235 million stake in a Chatham fund. Were not even covering some City Hall things, which we miss., Postmedia said in a statement that it did not share specific numbers on staffing. 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. Apr 3, 2023 11:40 AM PDT. The average price per square meter is $528/sqft. Chatham Asset Management is based out of Chatham. Over time, Chatham has increased its investment (and sunk its teeth?) But many dailies remained sources of reliable cash flow, making them attractive investments for owners focused on maximizing returns. Chatham hasnt been accused of wrongdoing by authorities, and the fund had no comment on its interactions with federal inspectors. While he was wrangling with Chatham, news trucks were parked outside his house for days. Newsonomics: Six takeaways from McClatchy's bankruptcy Anthony Melchiorre is the Founder & Managing Member of Chatham Asset Management. 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, 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. SEC employees have questioned the firm on subjects including its pricing of bonds and conversations with various bond dealers. 13 Beds 11 Baths 5920 sqft. Thats just not how bond math works, said Michael Terwilliger, a portfolio manager at Resource Credit Income Fund. Good writing. Anthony Melchiorre - Chatham Asset Management, Chatham Borough, New Jersey The investigation was supervised by Sheldon Pollock. All text and design is copyright 2020 WhaleWisdom.com. Chrome Extension. And your word synedoche drove me to the online dictionary. Its a huge problem, and its getting to the point where its unacceptable.. 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. Despite the companys financial distress, its bonds traded near par until December, and after dropping, have been climbing back. But in recent years it has increased bonuses for its top executives and added more debt, angering the news staff. As a family-owned business headquartered in New Jersey, Trinity Solar is excited to interact with families and members of []. Chris Christies administrationmoved$300 millionof pension cash into the Chatham Fund, LP, which hasowneda stake in AMI, according to SEC records. Last year, barely three months before Christie left office, his administrationsteeredanother $200 million to another Chatham vehicle. It will not be split up, McClatchy said, its 30 news outlets remaining intact. Playing tough is the Chatham way. Postmedia and Torstar concluded the deal with no cash changing hands. Yes, Tony Ridder came to The Star newsroom when KR bought the paper. I think Ill go to Egypt, Brazil and Africa before my $891.23 monthly pension check stops coming. He built his stature as a temperamental money-maker at the white-shoe firm. State officials are well-positioned and duty-bound to investigate allegations of potential wrongdoing in hedge fund portfolios, said former Securities and Exchange Commission attorney Edward Siedle. That kind of showing helped the firm attract $300 million from investors this quarter, a person familiar with the matter said. Playing tough is the Chatham way. As a subscriber, you have 10 gift articles to give each month. If asked to vote, I can assure you I will be voting for us to divest, he said. Seaport Global defended its practices. This will schedule a job to export all requested 13f holdings data for this filer. After sparking federal prosecutors ire for its role in burying Trumps secrets shortly before the 2016 election, the company has drawn international attention for its war with Jeff Bezos over its expos of his extramarital affair. 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). Price swings on the trades described in the lawsuit marked the biggest-ever percentage changes in those securities, data reviewed by Bloomberg show. 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. 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. Chatham Asset Management provides investment advisory services. Alpes-Maritimes, France Genealogy FamilySearch 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. Chatham has been restructuring their debt to give them more time. 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. Thats exactly what happened. [1]: A Chicago-area kid who studied economics at Northwestern and got an MBA from the University of Chicago, his high-toned education didnt reduce the intensity of the former high-school football star. 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. 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. Here are some repayment options, Streaming giants required to contribute to Canadian content as Bill C-11 becomes law, How becoming common-law or getting hitched changes tax-filing season, {{data.symbol | reutersRICLabelFormat:group.RICS}}, {{ stock | formatPrefix }}{{ stock.netChng | formatNetChange }}, Katherine Burton, Sridhar Natarajan and Shahien Nasiripour. Those investments amounted to a bet that the companies would acquire competitors and cut costs. 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. $5,850,800. Advisor Info 13D/G Insider (Form 4) Ownership/Private Fund Data 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.. ", A representative for Chatham said in an email that "Chatham sought, received and followed advice from an independent compliance consultant about the manner of executing the trading in question. Yet, over the years questions have swirled around Chatham. $19.3M Penalty For Chatham-Based Hedge Fund For Bond Trading - MSN By Sabela Ojea. Melchiorre and his. Traders have privately criticized what they see as lofty valuations of illiquid securities. Alpes Maritimes is part of the Provence-Alpes-Cte d'Azur region. American Media acquired her story for $150,000 and never published it, a practice known as catch-and-kill. Soon after, he crossed the Hudson River to set up his own hedge fund in Chatham, N.J. Mr. Melchiorre manages over $4 billion in assets for clients through various funds, including some listed under a Cayman Islands address, where more favorable tax rates apply. 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. 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. We'll assume you're ok with this, but you can opt-out if you wish. 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. At Hedge Fund That Owns Trump Secrets, Clashes and Odd Bond Math