Chatham and the Enquirer 's publisher, David Pecker, had turned to. Pressure has been building. It even offered lower yields than some blue-chip companies. From 2004 to 2019, roughly half of all newspaper jobs in the United States were eliminated, according to a University of North Carolina study. 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. 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. Use the CB Insights Platform to explore Chatham Asset Management's full profile. Google and Facebook came to dominate the online ad market, hampering publishers attempts to generate the necessary revenue from digital advertising. Michael Eisner came to the newsroom. 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. The state has said its exploring its options in light of Bezoss claim that American Media tried to blackmail him. He built his stature as a temperamental money-maker at the white-shoe firm. In April, the company said it had received a Chatham-led bid worth more than $300 million. Offers may be subject to change without notice. Yes, Tony Ridder came to The Star newsroom when KR bought the paper. Anthony Melchiorre, Chatham Asset Management, LLC: Profile and Biography - Bloomberg Markets Bloomberg Terminal Demo Request Bloomberg Connecting decision makers to a dynamic network of. Its bonds staged an improbable rally last year, charting a steady climb over 50 percent from 80 to 125 cents on the dollar. 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. This much is sure: Chatham founder Melchiorre, 51, has a formidable reputation. We give you the access and tools to invest like a Wall Street money manager at a Main Street price. His behavior infuriated some senior executives, according to former colleagues. A first French dpartement of Alpes-Maritimes existed in the same area from 1793 to 1814. STAY CONNECTED Subscribe to WhaleWisdom to view all filing data I can almost guarantee you there will be staff cuts at most or all of those newspapers. A similar story has unfolded at newspaper publisher McClatchy, which has posted annual losses since 2015. Melchiorre and his wife have donated more than $100,000 to Republican candidates and party committees since 2010. This post has been updated with additional information from Calpers and the Ohio pension system. Melchiorre and his. But Im not now. 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 . Anthony Ralph Melchiorre is an employee with Chatham Asset Management, LLC, a hedge fund company. Terms & Conditions. Start Free Trial . 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. Which is concerning., Under Hedge Fund Set to Own McClatchy, Canadian Newspapers Endured Big Cuts, https://www.nytimes.com/2020/07/16/business/media/hedge-fund-chatham-mcclatchy-postmedia-newspapers.html. AMIhas deniedit helped Trumps campaign, although Pecker was recently granted immunity as part of the Cohen probe. Hedge funds and private equity firms have had a growing presence in the news industry, to the chagrin of press advocates who argue that financial firms do not make civic-minded stewards of a business built largely on holding the powerful to account. The firms assets have doubled in the past three years. 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? The firm and its founder, Anthony Melchiorre, have a reputation for hard-edged business. in McClatchy, to the point where it became not only the companys largest shareholder but also its biggest creditor. Andrew MacLeod, the chief executive of Postmedia, said that Chatham was not a day-to-day operator of the business, and that the cost cuts were all natural outcomes of a legacy business thats been in structural decline. He added that when Chatham came on board in 2016, it was one of the few financial players willing to take a risk on a newspaper business. Chatham hasnt been accused of wrongdoing by authorities, and the fund had no comment on its interactions with federal inspectors. American Media now owes debtholders in excess of $1 billion, more than the book value of its assets. Its bonds rarely change hands. 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). I am personally appalled by the Enquirer being an accessory to Cohens criminal behavior on behalf of the candidate, said Tom Bruno, a state union representative who is the chairman of the pensions board of trustees and serves on New Jerseys State Investment Council, which oversees the pension systems investments. Chathams tabloid publisher possesses a treasure trove of Trumps secrets, his former fixer Cohen told Congress last month. Found 4 colleagues at Chatham Asset Management. Sign-up 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. Snap CEO Evan Spiegel wiped out over $10 million in student loans for an entire graduating class. Finally, they agreed to prohibitions from serving in certain positions in the investment industry, pursuant to the Investment Company Act. Yet its junior bonds offer yields comparable to more senior securities. 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. Despite the macroeconomic warnings of a recession and job[], A Cherry Hill-based financial institution is back on top of Small Business Administration lenders in New Jerse[]. This website uses cookies to improve your experience while you navigate through the website. Since Chathams takeover of Postmedia, Mr. Ratner and Mr. Schwartz have checked in regularly with its management team. All rights reserved. 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.. Chatham Asset Management - CB Insights 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. 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 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. 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. His behavior infuriated some senior executives, according to former colleagues. 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. 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.. Suite 3200 Fortress is owned by the Japanese conglomerate SoftBank. Marian Needham, the executive vice president of the NewsGuild, the union that represents employees at some McClatchy newspapers, said in a statement that McClatchy needed to adopt existing collective bargaining agreements. Chatham said at the time that the allegations were baseless and without merit. An SEC spokesman declined to comment. Whalewisdom has at least 9 13F filings, 19 13D filings, 29 13G filings, and 127 Form 4 filings. 130 E. Randolph St. All text and design is copyright 2020 WhaleWisdom.com. 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.. Since 2017, Postmedia has paid out over $6.2 million Canadian, or about $4.5 million, in bonuses to its five top executives, including Mr. MacLeod, the chief executive, and Paul Godfrey, the executive chairman of the board. They stay away from editorial matters but tend to focus on finding efficient ways to cut costs, according to two of the people. Chatham and Mr. Melchiorre consented to the SEC's order without admitting or denying its findings. John Kasichs appointeescommitted$125 million to Chatham. Blue Sky Digital Outdoor Advertising Fund Fund Data, Sarasin Ie Global Equity Opportunities (Usd) Fund Data, Themelios Ventures Ii-A, L.P. Fund Data. Long-term clients include the state pension fund of Chathams home state, New Jersey. 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. 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. 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. You also have the option to opt-out of these cookies. Chatham, which manages about $4 billion in assets on behalf of its clients, is expected to become the majority owner in the third quarter of the year, McClatchy said, and the publicly traded newspaper company will go private. We also use third-party cookies that help us analyze and understand how you use this website. Journalists employed by McClatchy, as well as the mayors in Lexington, Ky.; Sacramento; and Miami three cities served by McClatchy papers pushed for local, civic-minded ownership of the chain. 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 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. House in Cabris, Provence-Alpes-Cte d'Azur, France. Chatham hasnt been accused of wrongdoing by authorities, and the fund had no comment on its interactions with federal inspectors. AMI executives helped Cohen purchase stories that could have hurt Trumps presidential bid, according to theWall Street Journal. SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for Those investments amounted to a bet that the companies would acquire competitors and cut costs. In October 2016, a New Jersey hedge fund assumed ownership of Canadas largest newspaper chain with very little fanfare. Any statement or implication otherwise is false. Chatham hasnt denied Cohens participation in the meeting. CHATHAM ASSET HIGH YIELD OFFSHORE FUND, LTD. CHATHAM ASSET PARTNERS HIGH YIELD FUND, L.P. McClatchy did not disclose terms. 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.. Position: Managing Member/Portfolio Manager, Company/Fund Name: Chatham Asset Management, LLC, Address: 26 Main Street, Suite 204, Chatham, NJ, 7928, United States. 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 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. What a great word! I have no regrets whatsoever about going with the monthly pension. Anthony Ralph Melchiorre is an employee with Chatham Asset Management, LLC, a hedge fund company. 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. You are limited to the prior 8 quarters of 13F filings. "We remain vigilant in rooting out such misconduct in the marketplace, including in the fixed income sector, where investments can be less liquid.". S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. Sanjay Wadhwa, deputy director of the SEC's enforcement division, said in a statement that Chatham's 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. I think Ill go to Egypt, Brazil and Africa before my $891.23 monthly pension check stops coming. Anthony Melchiorre - Chatham Asset Management, Chatham Borough, New Jersey The SEC would like to thank the Financial Industry Regulatory Authority for its assistance with this matter. That deal still has not closed. Seaport Global defended its practices. Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. This will schedule a job to export all requested 13f holdings data for this filer. The consultant reviewed Chatham's trading annually for compliance with applicable laws and did not alert the firm to any issues. Thats because they are losing to him.. With McClatchy, the hedge fund also designed a trade aimed at reaping a windfall through credit-default swaps. CHATHAM ASSET MANAGEMENT, LLC Top 13F Holdings - WhaleWisdom.com All rights reserved. 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. . There are people who dont like him. the MV of securities sold, whichever is less, 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. 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. In the interest letter to Vericast CEO John OMalley, Chantham Managing Member Anthony Melchiorre detailed CAMs longstanding investments in the company, including: We are prepared to support any financing requirements for this transaction by subordinating some of our debt interests into subordinated notes or equity, thereby reducing the companys net leverage by up to 2.0x, Melchiorre wrote. 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. 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. AMI gave$10,000 to a super PACsupporting Christies 2016 presidential bid, and Mother Jones reported that ChristieplacedPecker on his campaign leadership team. 2023 BridgeTower Media. Location Chatham, New Jersey, United States; Regions Greater New York Area, East Coast, Northeastern US; 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. Then theres American Media. 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 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. Thats exactly what happened. A similar story has unfolded at newspaper publisher McClatchy, which has posted annual losses since 2015. Revenue has dropped an average of 10 percent a year since 2016. And in 2006, when McClatchy bought out Knight Ridder, McClatchy C.E.O. I remember that very well because by then I was hoping for a buyout and asked him, in front of the crowd, if he was planning on offering any. As part of it, Postmedia traded 17 of its papers to Torstar in exchange for 24 Torstar papers. A bankruptcy court hearing on the matter is scheduled for July 24. Chatham has been restructuring their debt to give them more time. Ex-99.1 - Sec Chatham Asset Management LLC, a private investment firm headquartered in Chatham, on May 16 submitted a letter of interest to acquire San Antonio-based Vericast from MacAndrews & Forbes Inc. for roughly $2.85 billion. Products. containing a link to download the .zip file of the CSV file(s) you requested. In the newspaper industry, it is typical after an ownership change for the C.E.O. SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for Chatham Asset Management Submits Indicative Bid to Acquire Vericast In the fall, Alden took a 32 percent stake in Tribune Publishing, the owner of The Chicago Tribune and several other major papers. Federal regulators have been asking questions, too. Thats something we wrestle with, he said. Chatham, an investor in the company since 2009, is its largest creditor. Its bonds staged an improbable rally last year, charting a steady climb over 50% from 80 to 125 cents on the dollar. 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. Chatham said at the time that the allegations were baseless and without merit. Chatham investment firm moves to acquire Vericast for $2.85B. In a statement, Craig Forman, the McClatchy chief executive, said Chatham would allow the company to continue providing strong news coverage. Chatham Asset Management . Activist Investor It needs to be bolstered and rebuilt, not milked for whatever profit it can still produce., Chatham Hedge Fund Has the Winning Bid for McClatchy Newspapers, https://www.nytimes.com/2020/07/12/business/media/hedge-fund-mcclatchy-newspapers.html. The court and regulators must approve the deal. Luxury Homes for Sale in Cabris, Provence Alpes Cte D'azur, France. $5,850,800. Serving as the lead backstop investor in Vericasts multibillion dollar refinancing transactions in 2020 and 2021. It was a lucrative move. There, they tried to prevent him from pursuing a lawsuit accusing Chatham-backed iPayment and its board member Pecker of ousting him unfairly. Necessary cookies are absolutely essential for the website to function properly. ", 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. Best known for its luridEnquirerheadlines (Aliens Are Living in My Toilet), AMI has been beset by a difficult environment for print publications. 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. /s/ Anthony Melchiorre Anthony Melchiorre Managing Member Contacts. Still, Chatham can elect one-third of Postmedias board, and it has debt covenants that give it huge sway over its long-term plans. We'll assume you're ok with this, but you can opt-out if you wish. Chathams trading has drawn scrutiny before. 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. When completed, an email will be sent to the email address you specify Sort: $5,409,230. How do I update this listing? 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 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. By clicking Accept, you consent to the use of ALL the cookies. The iPayment case thrust questions about Chathams bond-trading methods into the open. 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. JimmyCsays: At the juncture of journalism and daily life in KC, Theres clarity in the St. Louis Post-Dispatchs futureFor The Star, just a bighaze. Anthony Melchiorre has an ownership stake in Chatham Asset Management, LLC of between 50% and 75%. The state has said its exploring its options in light of Bezoss claim that American Media tried to blackmail him. As weak as these papers are and as far as they have fallen, they still throw off lots of cash. With roots going back to 1857, McClatchy, a consistent winner of top journalism awards, was one of the last major family-run news publishers. How fitting. 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. They wanted to kill a lawsuit by the former head of another Chatham company. 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. Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. 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. 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's Role in Tabloid-Worthy Stories - Fortune Tony Ridder came to the newsroom and spoke, although he was such a stone of a personality I dont specifically remember it. 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. They make money for their clients.. 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. Traders have privately criticized what they see as lofty valuations of illiquid securities. Bob Hepburn, a Torstar spokesman, said, Torstar continues to cooperate with the bureau in its investigation.. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. If they dont do a good job serving their community, the profits wont follow.. John Longo, a professor at Rutgers Business School, said such ownership did not necessarily mean a disregard for journalism. Chatham Asset Management provides investment advisory services. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. If the business is not profitable, theyll do what they need to to right-size it., He added: If they look at the assets they are buying, part of their core purpose is to serve their community. The announcement, which signals an end to 163 years of family ownership, underlines the growing influence of the finance industry on American newspapers. Chatham itself has been undergoing its first ever exam by the SECs inspections division, according to people familiar with the 16-year-old firm. Create Email Alert, ***Log In or When Knight Ridder bought The Star and three other Disney-owned papers in 1997, Im pretty sure Knight Ridder C.E.O. And your word synedoche drove me to the online dictionary. Enter your email address to subscribe to this blog and receive notifications of new posts by email. This story was co-published with MapLight and Capital & Main. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Anyone can read what you share. The New Jersey office building in which Chatham Asset Management has its office. 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. Postmedia, where Pecker sat on the board until last August, has posted annual losses for most of the past decade. Chatham Asset Management Sends Letter to R.R. Donnelley Board of In 2013, former New Jersey Gov. Indications are hes been with Chatham more than 15 years. Chatham Asset Management to Pay $19.3M to Settle SEC Charges. At least five other traders whove looked at the bonds say their prices seem too good to be true. State pension funds invested millions in hedge fund that controls Internal hedge fund records from late 2017 show that AMI investments comprised 23 percent of the Chatham Asset Partners High Yield Funds portfolio. Luxury Homes for Sale in Cabris, Provence Alpes Cte D'azur, France Finra, the brokerage industrys main watchdog, subsequently concluded its review, and its unclear what if anything resulted from it. 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.
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