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MHR Fund Management LLC

Last Updated: 12/3/2020

MHR Fund Management LLC is a Limited Liability Company that started in 1996 and is primarily owned and controlled by Mark H. Rachesky, MD.

MHR specializes in offering investment management services to private investment funds. We invest in distressed middle-market companies and assets with a focus on sourcing through our industry and portfolio company relationships. MHR is a hands-on investor that seeks to leverage its control or significant influence to work collaboratively with its portfolio companies, which we believe is essential to preserving and creating value. MHR also forms partnerships for its funds with specialized management teams to exploit distressed opportunities it identifies in certain industries. We employ a rigorous, due diligence-focused investment process with a strong emphasis on downside protection that capitalizes on our deep industry knowledge and analytical capabilities. MHR may utilize the bankruptcy or restructuring process to improve both the capital structure and the cost structure of portfolio companies. In addition, the Firm may seek to create long-term value beyond the turnaround process by continuing to improve operations, growing companies and effectuating successful exits. MHR believes that its focus on both restructuring and growing companies is differentiated and serves to generate attractive returns for its investors across various investing environments.

MHR Fund Management LLC operates out of an office in New York, NY. Based on the Form ADV filed on 2020-03-30 00:00:00, the investment firm is comprised of 26 employees, only 16 of whom performs investment advisory functions.

Fact Sheet

      Name: MHR Fund Management LLC
      CRD No: 157212
      Filing Recorded: 2020-03-30 00:00:00
      Year of Origin: 1996
      Employees: 26
      Clients: 14
      AUM: 4,861,459,107
      Management Fee: Unknown Percent
      Performance Fee: Unknown Percent
      Client Type: Pooled Investment Vehicles
      Assets Traded: Unspecified


Investment Strategy

According to the brochure submitted to IAPD, MHRs investment strategy is as follows:

MHR seeks to fundamentally alter the risk/reward profile of an investment in order to provide attractive returns while mitigating risk. The Firm utilizes a disciplined investment process based upon fundamental valuation and comprehensive due diligence, seeking to ensure that investments adhere to the Firm’s investment criteria and minimize losses. Key elements of MHR’s investment approach include: (i) proprietary sourcing through industry and portfolio company relationships; (ii) performing rigorous non-traditional due diligence; (iii) focusing on inefficient markets; (iv) achieving control and/or significant influence; (v) creating value utilizing multiple entry points; and (vi) driving hands-on value creation.

Methods of Analysis

In addition, MHRs methods of analysis include:

Unlike a private equity firm that evaluates an investment opportunity through an auction process, MHR rarely participates in auctions. As a result, MHR has significant experience conducting intensive non-traditional due diligence as a basis for the fundamental valuation of a prospective investment. The due diligence process may include a thorough examination of the company’s assets and liabilities (both on and off balance sheet), cash flows, strategic direction, competitive position and prospects within its industry, suppliers, distribution network and management team, as applicable. In addition, intensive legal due diligence is a critical part of MHR’s investment process. MHR closely reviews the legal documents applicable to a potential investment, including prospectuses, indentures, credit agreements, shareholder agreements and major contracts, including customer and management agreements, prior to making an investment. At times, MHR utilizes outside advisors to assist in analyzing areas that are often misunderstood by the market, including environmental liabilities, tax and regulatory issues or specific industry complexities.

Top 10 Holdings from Form 13F

Reporting Period: 09/30/2020

Issuer Share Value(1000s) Put/Call
NAVISTAR INTL CORP NEW 16,225,000 706,437
LIONS GATE ENTMNT CORP 19,256,281 182,550
LORAL SPACE & COMMUNICATNS I 8,529,419 156,088
LIONS GATE ENTMNT CORP 15,105,523 131,720
PJT PARTNERS INC 880,397 53,361
TITAN INTL INC ILL 8,005,000 23,134

Historical 13F Filings

EdgeGiant has compiled all 13F filings since Q2 2013 for your convenience. You can view historical portfolio position forMHR Fund Management 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.

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Historical Portfolio Holdings for MHR Fund Management LLC