Anchorage Capital Group LLC
Last Updated: 12/3/2020
Anchorage Capital Group LLC is a Limited Liability Company that started in 2003 and is primarily owned and controlled by Kevin Ulrich.
Per its ADV, Anchorage primarily offers advice on leveraged debt and equity, distressed debt, credit default swaps, structured credit instruments, corporate-backed collateralized debt obligations, corporate and sovereign fixed income securities, publicly traded and private equities, exchange traded funds, preferred equities, convertible securities, warrants, options, trade claims, lease paper, mortgage and asset-backed securities, total return and equity swaps, contracts for differences, direct loans, private investment funds and foreign exchange, commodities and interest rate swaps (for hedging purposes).
Anchorage Capital Group LLC operates out of an office in New York, NY. Based on the Form ADV filed on 2020-05-28 00:00:00, the investment firm is comprised of 166 employees, only 70 of whom performs investment advisory functions.
Fact Sheet
- Name: Anchorage Capital Group LLC
- CRD No: 135657
- Filing Recorded: 2020-05-28 00:00:00
- Year of Origin: 2003
- Employees: 166
- Clients: 87
- AUM: 28,296,069,829
- Management Fee: .75 to 2 Percent
- Performance Fee: 15 to 20 Percent
- Client Type: Pooled Investment Vehicles, State or Municipal Government Entities
- Assets Traded: Securities Issued by Pooled Investment Vehicles, Other
Contact
- Website: https://anchoragecap.com/
- Email: Unknown
- Telephone: 212-432-4600
- Address: 610 Broadway 6th Floor, New York, NY 10012
Investment Strategy
According to the brochure submitted to IAPD, Anchorages investment strategy is as follows:
Evergreen Funds:
Capital Partners Funds: The Capital Partners Funds employ hedged investment strategies, such as capital structure arbitrage, curve and paired trades, and directional investment strategies such as total return, reorganization, liquidation and direct loan investments. These Funds primarily invest in the leveraged issuer and distressed debt markets of North America and Europe, in addition to other markets including Australia and New Zealand, where they seek to capitalize on relative and absolute value investment opportunities using hedged and directional investment strategies.
Short Credit Funds: The Short Credit Funds employ an investment strategy that focuses on short debt risk trades primarily through the purchase of credit default swaps (“CDS”) and selling short bonds of issuers which have current spread levels that Anchorage believes are not supported by underlying credit fundamentals and economic factors, or where Anchorage believes a catalyst will cause credit spreads to widen. While the Funds focus primarily on purchasing CDS and selling short bonds, the Funds’ strategy can be applied to, and the Funds may invest in, other instruments, including but not limited to CDS curves, short trades on sovereign issuers, certain CDS indices, credit ETFs, options on credit ETFs, TRS on cash bond indices, and equities (selling short). The Short Credit Funds focus primarily on corporate and sovereign issuers in North America and Europe, in addition to other markets including Asia.
Harvest Funds:
The AIO Funds primarily invest on a long-only basis principally in the illiquid credit and asset markets of North America and Europe, in addition to other markets including Australia and New Zealand, provided, however, that such 21 Funds’ investments may be concentrated in one or more of these regions with little or no allocation to the other regions. Such Funds may also make investments in debt (including dislocated debt), equity (including post-restructured equity) illiquid claims, structured credit and other assets that appear to present a favorable risk-adjusted return profile based on fundamental credit research, structural review and analysis, differentiated asset sourcing, and assessment of managers/servicers. The AIO Funds may also invest in other cash and derivative instruments that are structured products predominantly linked to corporate and asset-backed credit risk. These Funds may also employ hedged investment and other strategies.
The SCF Funds primarily invest in the primary issuance of subordinated notes (“equity”) and secured notes (“liabilities”) of collateralized debt obligation transactions and collateralized loan obligation transactions and warehouse facilities, that are managed by Anchorage or its affiliates). The SCF Funds may also opportunistically invest in other structured credit investments and may (but are under no obligation to) employ hedged investment strategies.
Structured Credit Vehicles:
These vehicles consist primarily of a portfolio of senior secured bank loans, with an allowance for second lien loans, bonds, senior unsecured loans, floating rate notes and other obligations listed in the concentration limitations.
Methods of Analysis
In addition, Anchorages methods of analysis include:
Anchorage utilizes a variety of resources or services to form an investment idea or strategy. In general, Anchorage assesses investment opportunities by employing a rigorous research process that may include, among others, fundamental credit analysis, portfolio analytics, detailed analysis of historical financial statements and development of financial projections, meetings with company management, industry research (including use of outside experts), consultation with customers, suppliers and competitors, and analysis of documents (including credit agreements, bond indentures, intercreditor agreements, court filings) and use of outside legal counsel to determine validity and ranking of various claims.
Top 10 Holdings from Form 13F
Reporting Period: 09/30/2020
| Issuer | Share | Value(1000s) | Put/Call |
|---|---|---|---|
| PG&E CORP | 45,265,884 | 425,047 | |
| PG&E CORP | 3,775,000 | 370,290 | |
| ISHARES TR | 2,000,000 | 167,800 | Put |
| LIBERTY MEDIA CORP DEL | 114,360,000 | 84,937 | |
| DISH NETWORK CORPORATION | 87,755,000 | 80,626 | |
| HOUGHTON MIFFLIN HARCOURT CO | 19,465,570 | 33,675 | |
| PALANTIR TECHNOLOGIES INC | 2,952,707 | 28,051 | |
| EZCORP INC | 26,500,000 | 20,937 | |
| SHOPIFY INC | 12,500 | 12,787 | |
| GOODRICH PETE CORP | 1,569,878 | 12,072 |
Historical 13F Filings
EdgeGiant has compiled all 13F filings since Q2 2013 for your convenience. You can view historical portfolio position forAnchorage Capital Group LLCin our 13F section HERE.
To get the comprehensive list of holdings that fall under 13F regulatory guidelines, check out our write up on how to access and use 13Fs in your personal investment decisions.