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52. GoldenTree Asset Management / $11.93 billion
Location:
New York, NY
Founded:
2000
2016 Hedge Fund 100 Rank:
No. 57
2016 Capital:
$11.04 billion
2015 Hedge Fund 100 Rank:
No. 60
2015 Capital:
$10.595 billion
Years on List:
12
Website:
Address:
300 Park Avenue, 21st floor
New York, NY 10022
Phone:
212-847-3500
Fax:
212-847-3494
Other Office:
London
Profile & News
Firm Overview
Steven Tananbaum, CIO and co-founder of GoldenTree Asset Management, has fought hard to return his New York-based hedge fund firm to its pre-2008 form, when assets peaked at $10 billion in early 2009. As with many hedge funds a the time, the firm’s flagship fund lost 38.6 percent in 2008, but rebounded with nearly 70 percent gains in 2009 and 23.6 percent gains in 2010. Money consistently trickled out of the funds for three years following the market meltdown, however, and sunk to a $6.7 billion low at the end of 2011.
GoldenTree has grown its hedge fund asset pool by nearly $4 billion since 2012 and has maintained its spot among the 100 largest hedge funds in the world for ten consecutive years out of its 15-year existence. Overall the firm manages roughly $24.8 billion in assets across its strategies, according to the firm’s website.
GoldenTree’s renewed vigor is largely attributable to shrewd market calls and changes in firm infrastructure. In a move to conserve capital, the firm decreased exposure to European markets by 10 percent in 2012 due to the uncertainty of the markets. The credit-oriented firm steered clear of the U.S. junk bond market in 2014. Instead, GoldenTree poured money into Russian corporate bonds, most notably gas company OAO Gazprom, while the West upped sanctions against Russia. Tananbaum predicts shares of American Shipping may double over the two years through January 2016 and suggested through social media website Harvest that Overseas Shipholding Group should buy its competitor when OSG exits bankruptcy. The firm announced the opening of an office in Singapore in June 2014. GoldenTree has also built out a strong back office, with nearly half of its staff devoted to accounting, compliance, operations and technology.
Prior to founding GoldenTree in 2000, Tananbaum served as senior managing director of MacKay Shields, where he oversaw the high yield and hedge fund groups. He is a member of the Council on Foreign Relations and of the board of trustees of Purchase, New York’s Vassar College. Tananbaum graduated with a BA in economics from Vassar in 1987.
Strategy
The credit-oriented firm invests in secondary and distressed bond markets, loans and high-yield debt in the corporate market. It manages absolute return and long-only funds concentrated in corporate and structured credit markets. GoldenTree sometimes uses derivative instruments and bases its investments on bottom-up, fundamental analysis. GoldenTree has substantial holdings in collateralized loan obligations, residential mortgage-backed securities and collateralized debt obligations.
Funds and Fees Overview
GoldenTree manages hedge funds, closed-end funds, collateralized loan obligation funds, long-only investment funds and separate accounts. The two flagship strategies and opportunistic private equity-style vehicles invest primarily in corporate credit. The long-only high-yield funds and CLO vehicles invest primarily in leveraged loans and high yield bonds.
| Management Fee: | 0.5 percent to 2 percent of net assets per annum |
| Incentive Fee: | 10 percent to 20 percent of net capital appreciation for certain clients |
Clients
GoldenTree’s manages pooled investment vehicles and separately managed accounts for high-net-worth individuals and institutional investors, including private banking platforms, fund of funds, banks, trusts and pension funds.
| Regulatory Assets Under Management (RAUM)* | |||
| Discretionary | $26.07 billion (95 accounts) | ||
| Nondiscretionary | $0 (0 accounts) | ||
| Total | $26.07 billion (95 accounts) | ||
| Employees | 212 | ||
| Clients | 26–100 total | 64 percent non-U.S. | |
| Fiscal Year Ends | December | ||
| All data as of December 31, 2014. *Regulatory Assets Under Management (RAUM) includes no deduction of offsetting liabilities, thus representing gross AUM, not net AUM. RAUM calculations include leverage, proprietary assets and uncalled capital commitments, among other items not required in the calculation of AUM. | |||
Owners and Executives
Steven Shapiro, Steven Tananbaum and Leon Wagner founded GoldenTree in 2000. CIO Tananbaum is a high-yield investment specialist who started his career in finance upon joining MacKay Sheilds in 1989. Two years later, he became head of the high yield group and in 1997 was named lead portfolio manager of the hedge fund division. Shapiro is a senior portfolio manager with the firm. Prior to GoldenTree, he was a managing director in CIBC World Markets’ high yield group and head of media and telecommunications research. Wagner left GoldenTree in 2010 and launched LWPartners, a credit-focused investment firm, which merged with Greenwich, Connecticut-based hedge fund Trilogy Capital in November 2013, forming TrilogyLWP.
| Name | Position | Position Held Since |
| Steven Tananbaum | Managing Partner, CIO | 04/2000 |
| Steven Shapiro | Founding Partner, Senior Portfolio Manager | 06/2000 |
| Frederick Haddad | Partner, Senior Portfolio Manager | 09/2000 |
| Treacy Gaffney | Portfolio Manager | 02/2001 |
| Barry Ritholz | General Counsel | 02/2003 |
| Corey Geis | Head of Trading | 02/2003 |
| Adam Tuckman | Portfolio Manager | 01/2005 |
| George Travers | CCO | 06/2005 |
| William Christian | COO | 09/2005 |
| Robert Matza | Partner, President | 01/2006 |
| Jeffrey Brown | Portfolio Manager | 05/2006 |
| Keri McGinness | CFO | 06/2006 |
| Lee Kruter | Partner, Senior Portfolio Manager | 03/2007 |
| Vijay Rajguru | Partner | 04/2007 |
| Joseph Naggar | Partner, Head of Structured Products, Senior Portfolio Manager | 10/2007 |
| Kathryn Sutherland | Head of Marketing | 06/2008 |
| Ted Lodge | Partner | 12/2008 |
| Brian Pennington | Chief Risk Officer | 08/2009 |
| Timothy Collins | Director of Capital Sourcing | 04/2010 |
| Jeffrey Burke | Portfolio Manager | 01/2011 |
| Deeb Salem | Portfolio Manager | 08/2012 |
| Laurie Katz | Partner | 01/2014 |
| Seyavash Sarabi | Partner | 01/2014 |
| Pierre de Chillaz | Portfolio Manager | 01/2014 |
| Anthony Guido | Portfolio Manager | 01/2015 |
| Patrick Dyson | Portfolio Manager | 01/2015 |
| Dean Merritt | Portfolio Manager | 01/2015 |
Financial Detail
Firm Capital ($ million) 2012–2014
Hedge Fund 100 Ranking 2006–2014
Related Articles
- SEC Form ADV Brochure GoldenTree Asset Management
- The Morning Brief: Och-Ziff Shares Slide on Regulatory Probe News, by Stephen Taub, March 20, 2014
- The Morning Brief: Jury Selection Begins in Mathew Martoma Trial, by Stephen Taub, January 07, 2014
- New Mexico Lowers Hedge Fund Exposure in Favor of More Liquid Alternatives, by Anastasia Donde, December 06, 2012
- GoldenTree Goes For Extra Credit, by Britt Erica Tunick, March 01, 2012
- GoldenTree Preps Distressed Fund, August 08, 2008
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