Senator Investment Group, LP is a large hedge fund with almost $10 billion in assets under management (AUM) spread across nine different funds, also known as pooled investment vehicles. The firm has 15 financial advisory professionals, though it also employs others to help with different aspects of its day-to-day management. Even with such a large AUM, Senator Investment Group manages relatively few hedge funds. The firm does, however, manage other special-purpose investment accounts for certain clients as well.
Not everyone can invest in a hedge fund, given that they're limited to accredited investors. If you're unsure whether you qualify, or you want to mimic a hedge fund's strategy, you may want to work with a financial advisor.
Senator Investment Group Background
Senator Investment Group was founded in 2008. Douglas Silverman and Alexander Klabin are the indirect majority owners of the firm. In 2020, Klabin stepped down from his management role at the firm, though.
As a result, the firm decided that Silverman and others would gradually begin to take over Klabin's duties at the firm, while Klabin would still hold certain economic interests in the investment group. Among other moves, Jay Bharadwa now serves as co-chief investment officer (CIO) of Senator. The firm has just one office located on Madison Avenue in New York City.
Senator Investment Group Investment Philosophy
Senator Investment Group has nine different funds, many of which are managed according to different principles, strategies, and philosophies, and are made up of different kinds of investments. For example, the firm's Opportunity Fund seeks to invest opportunistically, over both the long and short term, while investing specifically in distressed debt, value and event equities and special situations.
On the whole, Senator invests across a wide range of markets and different investments. These investments may include bank debt, corporate bonds, equities, preferred stock, convertible securities, trade claims, credit default swaps, options and derivative instruments. The firm may also invest in private equity funds or other potentially illiquid investments. Senator uses a very analytical framework when deciding how to invest.
Largest Hedge Funds Managed by Senator Investment Group
Senator Global Opportunity Master Fund LP
- AUM: $9,177,377,170
- Minimum: $1,000,000
- Beneficial Owners: 195
Senator Focused Strategies LP
- AUM: $395,287,213
- Minimum: $5,000,000
- Beneficial Owners: 3
SIG Nassau Hall LP
- AUM: $25,122,225
- Minimum: $1,000,000
- Beneficial Owners: 2
Fees at Senator Investment Group
Senator Investment Group earns money from managing various funds and accounts. One such income stream comes from management fees. These management fees vary based on the account or fund but tend to range from 0.9% to 1.5% of the value of the entire fund annually. Management fees are typically paid quarterly and in advance.
The firm also earns performance-based fees from its funds. These fees are typically far higher, equal to 15.75% - 25% of the appreciated value of the fund.
What to Watch Out For
Senator Investment Group does not have any legal or regulatory disclosures listed on its Form ADV.
It's important to remember that only accredited investors can invest in hedge funds. To be considered an accredited investor, you must have at least $200,000 of earned income ($300,000 for couples) over the course of the past two years, plus a reasonable assumption that that same trend will continue for the current year. You can also become an accredited investor by having at least a $1 million net worth (minus the value of your primary residence) either on your own or with a spouse.
Becoming a Client of Senator Investment Group
As noted before, only accredited investors can work with hedge funds like the ones Senator Investment Group manages. If you meet the requirements to invest and want to work with the firm, you should get in touch directly. You can reach the firm by phone or by visiting its New York office. You can also go to the firm's website and submit a contact form.
All information is accurate as of the writing of this article.
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