anthony melchiorre chatham asset management

Since Chatham Asset Management took over Postmedia, Canadas largest newspaper chain, 1,600 employees have been laid off and more than 30 papers shut down. Chatham took a financial interest in McClatchy not long after its financial troubles began. 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. 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. By Sabela Ojea. Anthony Melchiorre, Chatham Asset Management, LLC: Profile and Biography - Bloomberg Markets Bloomberg Terminal Demo Request Bloomberg Connecting decision makers to a dynamic network of. Grimstad claimed in filings that Chatham had manipulated iPayment bonds to seize control of the company. When completed, an email will be sent to the email address you specify When Walt Disney Co. bought The Star and its parent company, Capital Cities/ABC, in 1995, Disney C.E.O. The matter has been resolved and we are focused on generating returns for our investors.". Finra, the brokerage industrys main watchdog, subsequently concluded its review, and its unclear what if anything resulted from it. 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. Hedge funds are certainly profit-oriented, Mr. Longo said. "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. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices 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. 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. Federal regulators have been asking questions, too. Few people noticed, including some of the chains employees. 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. AMI gave$10,000 to a super PACsupporting Christies 2016 presidential bid, and Mother Jones reported that ChristieplacedPecker on his campaign leadership team. In an April 3 announcement, the Securities and Exchange Commission said that Chatham Asset Management LLC and founder Anthony Melchiorre agreed to pay more than $19.3 million in combined . But Mr. MacLeod, the chief executive, acknowledged complaints about the cuts. 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. Chatham Asset Management provides investment advisory services. The investigation remains active, according to an agency representative. Google and Facebook came to dominate the online ad market, hampering publishers attempts to generate the necessary revenue from digital advertising. 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%, or $400 million, of the $2.5 billion that Chatham manages in its main fund and related accounts. 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 companys C.E.O., Anthony Melchiorre, doesnt give interviews, and no photo of him is available online. Thats exactly what happened. 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. When Knight Ridder bought The Star and three other Disney-owned papers in 1997, Im pretty sure Knight Ridder C.E.O. Alden controls roughly 200 outlets through its newspaper chain, MediaNews Group. Anthony is Managing Member/Portfolio Manager and has served as Managing Member/Portfolio Manager since 09/01/2003. McClatchy, the publisher of The Miami Herald, The Kansas City Star, The Charlotte Observer and its flagship publication, The Sacramento Bee, filed for Chapter 11 bankruptcy protection in February. With this significant deleveraging and potential additional synergies to be realized with other Chatham portfolio companies, we would anticipate to refinance the capital structure at more favorable rates and lower the companys cash interest payments by approximately $100 million to $150 million per year on a pro forma basis, thereby substantially enhancing the companys financial flexibility.. In the newspaper industry, it is typical after an ownership change for the C.E.O. In the last two fiscal years that ended in August, Postmedia booked losses totaling about $40 million in Canadian dollars. Shortly after, Postmedia announced it would shut down all 24 newsrooms it had acquired, except for one, according to public filings. the MV of securities sold, whichever is less, Yet its junior bonds offer yields comparable to more senior securities. 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.. American Media now owes debtholders in excess of $1 billion, more than the book value of its assets. Indications are hes been with Chatham more than 15 years. In 2018, Canadas Competition Bureau, a law enforcement agency that oversees commerce, opened an investigation into the transaction for possible anticompetitive conduct and has searched the offices of both Postmedia and Torstar. email address below and choose 'Submit'. The firms assets have doubled in the past three years. NJBIZ, New Jerseys leading business journal, provides 24/7 business news coverage and events honoring top business professionals. House in Cabris, Provence-Alpes-Cte d'Azur, France. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. 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. American Media acquired her story for $150,000 and never published it, a practice known as catch-and-kill. . STAY CONNECTED Serving as the lead backstop investor in Vericasts multibillion dollar refinancing transactions in 2020 and 2021. AMI represents a large portion of Chathams portfolio. Behind the salacious headlines was an issue thats drawing scrutiny from regulators: bond prices. 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. A similar story has unfolded at newspaper publisher McClatchy, which has posted annual losses since 2015. A year later, 3 grads CA Notice at Collection and Privacy Notice, Do Not Sell/Share My Personal Information. "We remain vigilant in rooting out such misconduct in the marketplace, including in the fixed income sector, where investments can be less liquid.". 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. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. 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.. The New York Post put the story on its front page under the headline Frisky Business. (Grimstad has called those allegations false and meritless.). 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. I have no regrets whatsoever about going with the monthly pension. 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. 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. 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. The consultant reviewed Chatham's trading annually for compliance with applicable laws and did not alert the firm to any issues. 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.. SEC form, multiple filers or classes of filers, and much more.***. Melchiorre also served as the. I wouldnt even begin to consider owning it at that level. Its bonds staged an improbable rally last year, charting a steady climb over 50 percent from 80 to 125 cents on the dollar. 13F filing from CHATHAM ASSET MANAGEMENT, LLC, enter your 2023 Fortune Media IP Limited. 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. 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). 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. We'll assume you're ok with this, but you can opt-out if you wish. What it does, apparently, is make its clients lots of money. The fund, Chatham Asset Management, acquired two-thirds of Postmedia, the publisher of The National Post, The Vancouver Sun and several other major Canadian papers, by trading a portion of the money it was owed for the majority ownership stake. Its no wonder Chathams side would enlist Cohen, long known for his doggedness on behalf of Trump. Terms & Conditions. Blue Sky Digital Outdoor Advertising Fund Fund Data, Sarasin Ie Global Equity Opportunities (Usd) Fund Data, Themelios Ventures Ii-A, L.P. Fund Data.