Avenue Capital Group Hedge Fund Notes

Avenue Capital Hedge Fund

Avenue Capital Group - Hedge Fund Notes

Avenue Capital Group Hedge FundThere are over 50,000 websites containing details on Avenue Capital Group's hedge fund portfolios. Here are a dozen of the most interesting publicly available resources. The following piece on Avenue Capital Group is being published as part of our daily effort to track hedge fund events in the industry. To review other hedge fund related announcements please see our Hedge Fund Tracker Tool.


Resource #1: (6.1.09) Hedge-fund manager Marc Lasry’s Avenue Capital Group decided not to sell its high-yield loan unit as the market recovers, according to three people with knowledge of the decision.

The New York-based investment firm, with $16.5 billion in assets, ended talks to sell the division as loan prices have risen more than 20 percent on average the past two months as measured by the S&P/LSTA U.S. Leveraged Loan 100 Index, said the people, who declined to be identified because the discussions were private. Avenue is now stepping up its efforts to buy other high-yield loan funds.

Avenue originally decided to sell the unit, which manages collateralized loan obligations valued at $2.8 billion as of Feb. 28, as defaults were rising and the value of the loans were dropping. CLOs pool loans and slice them into securities of varying risk and ratings. source

Resource #2: (4.20.09) Billionaire hedge-fund manager Marc Lasry’s Avenue Capital Group is in talks to sell a division that oversees high-yield, high-risk loans, according to four people familiar with the situation.

Avenue Capital, which manages $2.8 billion of leveraged loans in its collateralized debt obligation business, may sell the unit within the next two months, the people said, who declined to be identified because the discussions are private. source

Resource #3: (12.3.08) Financial assets have become so cheap because of the credit crisis that now is a good time to scoop up bargains, the head of one of the world's biggest hedge funds, Avenue Capital, said on Wednesday.

"Now is a phenomenal time to buy, assuming you think we're not in a depression," Marc Lasry, chairman and CEO of the company, said at the 2008 Clinton Global Initiative meeting in Hong Kong. "We're looking at valuations we think are extremely low. Unless the unthinkable happens, you'll be fine," he said, referring to the investment environment. Lasry said the fund is holding around $7 billion in cash. Of that capital, Avenue is investing 10 percent a month, he said. source

10 Additional Resources:
  • This document from PSERS Private Investment Program is a recommendation for their company to invest with Avenue Capital. It talks at length about the background of the firm and the strategies they use to generate returns. The fund uses a combination of “distressed/stressed acquisitions” and “highly structured direct investments”.
  • Profile of Avenue Capital founder and managing partner Marc Lasry. His firm has $9 billion in assets and focuses on investing in distressed assets. He talks about his current efforts in China and also the nature of distressed debt.
  • This resource is from Avenue Capital’s home page. They have pages for their strategies for each region and each type of fund. Also have pages for their investment approach and investment team. Very detailed and thorough explanations.
  • Again from PSERS Private Investment Program, this is a recommendation for their company to invest in Avenue Capital Real Estate Fund. The fund will invest in real estate or related businesses through a number of possible ways. 1)”acquisition of direct interests” 2) Forming joint ventures to acquire real estate assets. 3) acquire or organize “real estate backed indebtedness” 4) invest in public or private real estate trusts
  • A 2005 New York Times article about Lasry, in which he discusses distressed securities. He talks about some of his investments abroad in Europe and Asia. He mentions that distressed assets perform particularly well when the market is performing poorly and companies are going bankrupt because he buys their debt.
  • The 100 Women in Hedge Fund organization have honored avenue Capital’s co-founder and managing partner Sonia Gardner with the 2008 Leadership Award. This honor “recognizes individuals whose professional dedication, innovation, passion and ethics set a standard of excellence for the industry.”
  • Avenue Capital has teamed with Pegasus Capital Advisors to oversee Avenue’s debt and equity investing strategy. Marc Lasry says the move “adds a dimension to Avenue which I believe is extremely important - a private equity practice.”
  • Chelsea Clinton, daughter of Bill and Hilary Clinton now works for Avenue Capital Management. Lasry has been active in donating to the Clinton campaigns in the past.
  • In 2006 Morgan Stanley purchased roughly a 20% stake in Avenue Capital for about $280 million. Avenue Capital remains an independent firm and the proceeds from the sale will be investing back into the company’s hedge funds.
  • In 2006 the International Finance Corporation made a $50 million investment in Avenue Capital’s “Avenue Asia Special Situations Fund.” This fund targets “nonperforming debt or debt-related securities of companies in financial distress,” primarily in China and India.
  • These two articles (article 1 / article 2) talk about Avenue Capital’s most recent purchase. Avenue Capital acquired a 6.5% stake in Premier Start GmbH in 2008. Premier is the top pay TV provider in Austria and Germany with about 170,000 subscribers in its 1 year of operation.
  • In 2007 Avenue acquired a 15% stke in Morepen Laboratories a company based in India. Morepen Labs has significant debt and the article discussed the details of how Avenue deal will work.
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