Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right
Tap on the profile icon to edit
your financial details.

Contrarian Capital Review

Your Details Done
by Updated

This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Contrarian Capital Management, LLC is a large, Greenwich, Connecticut-based hedge fund with over $5 billion in total assets under management (AUM). The fund manages 28 pooled investment vehicles, also known as funds, and has a team of financial advisory professionals that is 25 members strong. The firm takes a multi-strategy approach to investing and seeks to create portfolios based on distressed securities.

Not everyone is able to invest in hedge funds, as only accredited investors are eligible. Since the requirements to become accredited are quite stringent, working with a financial advisor could be an easier way to access hedge fund-like investment strategies.

Contrarian Capital Background

Contrarian Capital has been in business for more than 25 years, having been founded and registered with the Securities and Exchange Commission (SEC) in 1995. Jon Bauer is the firm's principal owner, and Janice Stanton and Gil Tenzer are also owners of the firm. Xiao Song and Jeffrey Bauer are special limited members. Each owner may own their share of the firm individually or though other entities.

There are multiple chartered financial analysts (CFAs) on-staff at the firm. Contrarian Capital works with both individual and institutional investors.

Contrarian Capital Investment Philosophy

Contrarian Capital's investment philosophy and strategies revolve around distressed securities, but it doesn't limit itself to only investing in these types of assets. The firm's approach can be described as multi-strategy. Distressed assets typically include corporations, real estate, non-U.S. securities, high-yield securities, senior secured obligations, trade claims and equities. The firm also looks for investments that are traditionally undervalued.

Funds at Contrarian Capital are managed based on a specific strategy or set of strategies, but separately managed client accounts may use strategies that are decided upon with the client. These clients could impose restrictions on the types of investments the firm can purchase on their behalf. 

Contrarian Capital specializes in distressed investing, but advisors use a variety of analysis methods to help inform their investment decisions. Advisors may use any combination of fundamental research, charting analysis and cyclical analysis to help drive growth in its accounts and funds.

Largest Hedge Funds Managed by Contrarian Capital

Contrarian Emerging Markets, LP

  • AUM: $2,130,093,000
  • Minimum: $1,000,000
  • Beneficial Owners: 315

Contrarian Capital Fund I, LP

  • AUM: $825,666,000
  • Minimum: $1,000,000
  • Beneficial Owners: 119

Contrarian Centre Street Partnership, LP

  • AUM: $276,447,000
  • Minimum: $1,000,000
  • Beneficial Owners: 5

Contrarian Dome Du Gouter Master Fund, LP

  • AUM: $225,613,000
  • Minimum: $1,000,000
  • Beneficial Owners: 7

Contrarian EM II, LP

  • AUM: $223,473,000
  • Minimum: $100,000,000
  • Beneficial Owners: 2

Fees at Contrarian Capital

Management fees for funds and separately managed accounts at Contrarian Capital vary based upon the specific fund, or client in the case of a separately managed account. These fees typically range from 0.75% to 2% annually and are charged quarterly, in advance.

Contrarian Capital also takes performance-based fees from its funds and other accounts. These fees will generally equal about 20% of gains in any fund or account. Specific fee schedules vary by fund and by account, so reach out to Contrarian directly for more information.

What to Watch Out For

Contrarian Capital does not have any disclosures on its Form ADV.

It's important to note that only accredited investors can invest in hedge funds. To become an accredited investor, you must have at least $200,000 of earned income ($300,000 for couples) in each of the past two years. There must also be a reasonable assumption that the same trend will be true for the coming year. You can also become an accredited investor if you have at least a $1 million net worth, minus the value of your primary residence. You can meet the latter requirement either on your own or together with a spouse.

Becoming a Client of Contrarian Capital

If you're interested in becoming a client of Contrarian Capital, you must be an accredited investor first. If you meet that requirement, you can get in touch with the firm by going online and submitting a contact form, calling the firm or visiting the firm at any one of its offices.

All information is accurate as of the writing of this article.

Tips for Investing

  • There are a number of factors to account for when investing, which can make a financial advisor especially helpful. Luckily, finding the right financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in just five minutes. Get started now.
  • SmartAsset's investment calculator can help you figure out how much your portfolio needs to earn for you to reach your goals. This is especially important if you're looking to reach specific long-term goals.

How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research