Anchorage Capital Group is an investment management firm with more than $28 billion in assets under management (AUM). It currently manages a total of 87 pooled investment vehicles, 17 of which are hedge funds. The firm currently employs 70 advisors.
It's important to understand that hedge funds are often complex, loosely regulated investments and therefore only accessible to accredited investors. If you're looking for trusted and comprehensive support in managing your own finances, consider speaking to a professional financial advisor.
Anchorage Capital Group Background
Anchorage Capital Group was founded in 2003 and was registered with the SEC as an investment advisor in January of 2006. It is a privately held company. The firm's headquarters are in New York City and according to its website, it also has a London office. It provides discretionary investment advisory services, which include but are not limited to managing and directing assets for private investment funds as well as serving as investment manager to certain structured credit vehicles. Specifically, its various funds are called the Evergreen Funds, Harvest Funds, Customized Funds and Structured Credit Vehicles. There may be a minimum initial investment amount that varies depending on the fund.
Anchorage Capital Group is also the largest shareholder of the studio that owns MGM Holdings Inc (of which its CEO, Kevin Ulrich, is board chair). Professional employee certifications include CFA (chartered financial analyst). Clients include or have recently included the Rockefeller Foundation, the University at Buffalo Foundation, the San Diego Foundation and others.
The firm's majority owner is CEO Kevin Ulrich (formerly of Goldman Sachs), through his indirect ownership of interests in Anchorage Advisors Management, LLC. In 2020, it was reported (by publications like “Institutional Investor” and others) that Ulrich had been accused of committing sexual battery the year before, and the firm had not decided to tell investors and industry consultants. A month after the legal filing, claims were withdrawn for unclear reasons, with no comments from either side.
Anchorage Capital Group Investment Philosophy
Anchorage Capital Group uses various resources and services to form an idea or strategy for investments. Most generally, its approach centers a rigorous research process. This process may include but is not limited to: fundamental credit analysis; portfolio analysis; detailed analysis of historical financial statements; meetings with company management; industry research that includes using the work of outside experts; consultation with customers, suppliers and competitors; analysis of documents and use of external legal counsel to determine validity and ranking of various claims. Anchorage Capital Group devises tailored specific investment strategies for each of its funds, depending on specific goals and needs.
Largest Hedge Funds Managed by Anchorage Capital Group
Anchorage Capital Master Offshore, Ltd.
- AUM: $13,189,783,947
- Minimum: $10 million
- Beneficial Owners: 340
Anchorage Illiquid Opportunities Master VI (A), LP
- AUM: $1,290,942,204
- Minimum: $10 million
- Beneficial Owners: 49
Anchorage Illiquid Opportunities Offshore Master V, LP
- AUM: $1,279,111,750
- Minimum: $10 million
- Beneficial Owners: 79
Anchorage Short Credit Offshore Master Fund, Ltd.
- AUM: $504,727,654
- Minimum: $1 million
- Beneficial Owners: 23
Anchorage Illiquid Opportunities Offshore Master IV, LP
- AUM: $475,045,493
- Minimum: $10 million
- Beneficial Owners: 71
Fees at Anchorage Capital Group
Anchorage Capital Group generally charges fees based on a set percentage of AUM is well as performance-based fees. AUM-based fees are usually charged monthly or quarterly in advance based on value of assets, generally ranging from 0.75% to 2% annually. Furthermore, the firm or its affiliates receives performance-based fees from certain clients, generally ranging from 15% to 20% of the net profits of a particular investor.
For its Customized Funds, fee arrangements are negotiated on an individual basis. For the Structured Credit Vehicles, fees generally range from 0.45% two 0.55% annually. In general, the firm reserves the right to negotiate or waive fees and performance allocations for certain investors.
Beyond this, other additional fees and expenses may apply - including but not limited to registration fees, maintenance fees, certain taxes and regulatory expenses - so it is imperative that potential clients reach out about specific fees charged to their fund.
What to Watch Out For
Again, it's important to understand that hedge funds are often complex, loosely regulated investments and therefore accessible only to accredited investors. Such investors differ from retail investors or individual investors, who might be taking a more DIY approach or enlisting the services of a financial advisor.
As stated above, while claims were withdrawn after the legal filing (with no comments from either side), potential and current clients should be aware that CEO Kevin Ulrich had recently been accused of committing sexual battery in 2019 and that existing investors and industry consultants were not notified at the time.
Aside from this recent news, Anchorage Capital Group has not undergone any disciplinary or legal action within the past 10 years deemed material to a client’s evaluation of its business integrity. That said, as an SEC-registered investment manager, the firm is legally obligated to uphold its fiduciary duty and work in clients’ best interests at all times. You can view its latest Form ADV on the official website of the Securities & Exchange Commission (SEC).
Becoming a Client of Anchorage Capital Group
If you are an accredited investor and wish to become a client of Anchorage Capital Group, you can visit the firm's website or call (212) 432-4600.
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