Goldentree Asset Management LP
Founded in 2000, Goldentree Asset Management is a global asset management firm that specializes in credit sectors such as high-yield bonds, leveraged loans, distressed debt, structured products, emerging markets, private equity and credit-themed equities. As of November 2019, its Goldentree Master Fund has had a 9.22% annual return from its start in 2000, compared to 6.7% for the HFRI ED: Distressed/Restructuring Index over the same period.
With more than $28 billion in assets under management (AUM), Goldentree Asset serves institutional investors, including public and corporate pensions, endowments, foundations, insurance companies, family offices and sovereign wealth funds. The hedge fund firm is headquartered in New York City, with offices also in Austin and Miami — and in London, Singapore, Sydney, Tokyo and Dublin. According to its recent SEC filings, 53% of its clients are not in the U.S. Indeed, its website states that more than 20 languages are spoken across the firm.
Goldentree Asset Management Background
After working more than a decade in the credit markets, Steven Tananbaum founded GoldenTree Asset in 2000. Since then, the firm has added 25 partners and expanded to more than 250 employees across the globe. Within three years of its start, the practice was managing more than $5 billion, producing strong returns from the get-go. It is highly regarded, and its funds are known for being top performers.
As Managing Partner and Chief Investment Officer, Tananbaum oversees all of the firm’s fund offerings. He holds the largest stake in the practice that is entirely employee owned.
Goldentree Asset Management Client Types and Minimum Account Sizes
As mentioned earlier, Goldentree Asset primarily works with institutional investors. According to SEC data, the bulk of the firm’s clients are pooled investment vehicles, which the firm manages on behalf of institutional investors. The rest of its clients are corporations or other business entities, state or municipal government entities, pension and profit-sharing plans and insurance companies.
Many of Goldentree Asset’s private funds have a minimum investment of $1,000,000, though the firm does not publish these minimums. That said, its institutional investors’ accounts are probably much larger.
Services Offered by Goldentree Asset Management
As mentioned earlier, Goldentree Capital is a global investment manager with an expertise in credit. It offers alternative and long-only strategies. Within the former category, it offers:
- Master Strategy - invests across credit asset classes, including high-yield bonds, leveraged loans, distressed debt, structured product, credit-themed equities and emerging markets
- Credit Opportunities Strategy - invests in senior structured debt with the use of moderate leverage
- Distressed Strategy - invests in less liquid or higher concentration positions in private equity-style funds and separate accounts, in addition to the firm’s Master Strategy
- Opportunistic Structured Product Strategy - as the name suggests, invests in structured product opportunities in private equity-style funds
Within its long-only strategies, the firm offers:
- Multi-Sector Strategy - invests in leveraged loans, high-yield bonds, structured bonds and more
- Emerging Markets Strategy - invests in global emerging market debt across sovereign, quasi-sovereign and corporate entities.
- European Value Strategy - invests in European high-yield bonds and loans
- Structured Product Strategy - invests primarily in floating rate, global structured products, including collateralized loan obligations (CLOs), residential mortgage-backed securities and asset-backed securities
- Value Strategy - invests primarily in North American high-yield bonds
- Loan Strategy - invests primarily in leveraged loans via CLO structures
Goldentree Asset Management Investing Philosophy
Goldentree Asset describes itself as a “fundamental value investor with a total-return, catalyst-driven investment process.” That means that it actively manages its portfolios with an emphasis on risk management. The firm states that its investing philosophy is based on four pillars:
- Robust fundamental analysis to determine enterprise value
- Analysis of capital structure to ensure high margin of safety
- Identified catalysts to drive total return
- Real-time and rigorous relative value analysis
Fees Under Goldentree Asset Management
Goldentree Asset typically charges management fees that are based on the net asset value of AUM. The negotiated rate depends on the type of fund or account managed and strategy. The firm and/or its affiliated entities may also charge performance-based fees for certain separately managed accounts and funds.
What to Watch Out For
Goldentree Asset had no disclosures of legal or regulatory issues in its latest SEC filings.
That said, Goldentree Asset is a global investment manager that works primarily with institutional, governmental and corporate entities. It does not provide financial planning or wealth management services. It also does not work with small investors.
Opening an Account With Goldentree Asset Management
To contact Goldentree Asset, call its New York headquarters at (212) 847-3500.
All information was accurate as of the writing of this article.
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