News hedge fund is a type of investment that focuses on investing in newspapers and other media companies. It’s a niche that has become quite popular in recent years, with many investors seeking opportunities to make money on the rise of digital publishing. However, a new study shows that this sector isn’t always a safe bet.
Alden's reputation in the newspaper industry
Known as a vulture fund, Alden has a reputation for slashing costs at newspaper properties. They’ve been known to lay off journalists and sell off real estate. They own a number of titles including the Chicago Tribune and the New York Daily News. Alden began buying newspapers at the tail end of the Great Recession. They’ve also been criticized for slashing staff and closing down newsrooms.
Alden has made an effort to increase the online advertising revenue of their publications. However, they’ve cut back circulation faster than their competitors. In the case of the Denver Post, they cut the newsroom staff from 150 to just one-third of the total. They’ve also laid off investigative reporters, like the one who exposed the governor’s offshore shell companies. They’ve cut reporters on the homicide database and lost an undocumented immigrant photographer. They’ve closed a few weekly newspapers, but haven’t yet closed their dailies.
Their strategy to buy distressed papers on the cheap and then cut their staffs has left many local newspapers in shambles. In the last decade, more than one-fourth of all newspapers have closed. When Alden took over Tribune Publishing, it sparked a panic among local reporters. The paper’s senior editor told a reporter, “There’s nothing that I can do.” He didn’t have the power to speak for the corporate bosses.
Alden's lack of investment in digital presence
The Alden Global Capital group bought its first newspaper 10 years ago. Today, Alden Equity Partners owns over 200 newspapers, including the Baltimore Sun, the New York Daily News, and the Chicago Tribune. In fact, the firm is the second largest newspaper owner in the country by circulation, behind the Tribune.
One of the most interesting aspects of the merger is Alden’s reluctance to invest in digital media, a glaring gap in the news business. While it’s no secret that Alden has a knack for closing dailies in the short term, it has a reputation for turning its best products into snoozers. For instance, when Alden took over the Allentown Morning Call in Pennsylvania, readers were encouraged to participate in reader forums. The company also financed a deal with Cerberus, the private equity firm that owned a security firm that trained the Jamal Khashoggi killers. The deal was not without its problems. For one thing, the aforementioned security company has been accused of failing to protect the journalist and the community.
While the deal did indeed come to fruition, it came at a price. The Tribune and the Metro, which were acquired by Alden, were forced to lay off more than a quarter of their news staff. Meanwhile, their competitors such as the Minneapolis Star Tribune have adapted successful long-term business models.
Citadel is a Chicago-based hedge fund. The company was founded by billionaire investor Ken Griffin. He owns 85% of the firm. It has assets of $235 billion. It has offices in New York and San Francisco.
The hedge fund has an equities portfolio. Its flagship fund has been up almost 30% year-to-date. Its other three funds are up double digits. The firm’s Tactical Trading fund also gained 2.4% in September. The fund benefited from quantitative equity strategies. Citadel’s flagship hedge fund is up 1.5% in October. Its equities fund has also done well. The company’s three other hedge funds are up double digits.
In addition, the company recently announced it will be moving its global headquarters from Chicago to Miami. The move was motivated by Florida’s business-friendly climate and tax advantages. The move will also allow the firm to extend its presence in Southeast Asia. The firm’s CEO is Kenneth Griffin. He has a net worth of around $25 billion. He is an active investor, trader, and entrepreneur. He has spent his career in the global macro field. He has been a supporter of G-20 reforms to the OTC derivatives market. The firm’s flagship hedge fund is up almost 29% year-to-date. Its other four hedge funds are up double digits.
Long Ridge Equity Partners is one of the leading sector-focused private equity firms in the US. The firm’s investment team focuses on growth stage investments in business technology and financial technology. Its target companies usually have between five and fifty million dollars in revenues. In addition, Long Ridge’s portfolio companies have a history of significant growth under excellent management teams. Long Ridge’s investors include current and retired financial services executives, university endowments, family offices, advisors, and pension funds.
The fund has invested in more than twenty investments. The majority of the company’s investments have been completed with a commitment of less than two rounds. Long Ridge recently announced a majority growth investment in Acqueon, a provider of customer engagement software. The company’s technology platform allows enterprises to connect with customers proactively and create personalized campaigns. It also helps agents optimize productivity and provides real-time agent guidance. The company’s platform has more than 200 enterprise clients. The firm is currently investing in Acqueon’s people, which will enable the company to further enhance its technology and service offerings.
In recent years, Long Ridge has been involved in a number of high profile investments. In 2016, the company made 23 investments. Of these, six portfolio exits were completed