CalPERS Apparently Held Large Stake in Parent Company of the National Enquirer

The Los Angeles Times reported on February 21, 2019 that CalPERS held a substantial stake in American Media Incorporated, the parent company of the National Enquirer.

According to the Times article "an investment managed by a New Jersey hedge fund, California’s public pension fund appears to have owned as much as one-third of American Media Inc., the National Enquirer’s parent company, in 2016. It is not clear whether CalPERS continues to hold a major stake in the tabloid publisher." The news organization Maplight reported last year that California was one of three states whose pension funds had invested in the privately held publisher.

The Times article further states that "[s]tarting in 2009, CalPERS invested $607.7 million with Chatham Asset Management hedge fund’s Chatham Eureka Fund, which is a “fund of one” — a type of investment created and managed for a single institutional investor rather than for a pooled group of investors." It appears that CalPERS held a 99% stake in this fund.

According to the Times article Chatham Asset Management purchased a majority stake in American Media Inc. in 2014, when the publisher was struggling to emerge from a 2010 bankruptcy and needed a financial lifeline.

In its most recent public filings, from July 2016, American Media Inc. reported that four Chatham-controlled funds together owned 78% of the company. The largest single owner, by far, was the Eureka Fund, with a 34% overall stake