Type | Private |
---|---|
Founded | 1994 |
Founder | Nancy Zimmerman Gabriel Sunshine |
Headquarters | 15th floor, 888 Boylston Street, Boston, Massachusetts , |
Key people | John Spinney (chief operating officer) Kirstan Barnett (general counsel & chief compliance officer) Geraldine Acuña-Sunshine (senior counsel) Wendy Sheu (Chief Compliance Officer) |
Total assets | $26.6 billion (May 2019) |
Number of employees | 100+ |
Website | bracebridgecapital.com |
Bracebridge Capital is a hedge fund based in Boston, Massachusetts. It was co-founded by Nancy Zimmerman and Gabriel Sunshine. [1] It manages funds from the endowments of Yale University and Princeton University. It also made $1.5 billion from the Argentine debt restructuring. As of February 2016, it had $10.3 billion of assets under management, making it the largest hedge fund managed by a woman in the world. Sunshine owns a 5% stake in Bracebridge as of 2017. [2]
Bracebridge Capital was co-founded by Nancy Zimmerman and Gabriel Brendan Sunshine in 1994. [3] Zimmerman is a Brown alumna, former Goldman Sachs employee, and the wife of Harvard professor Andrei Shleifer. [4] [5]
Sunshine is a Harvard graduate, class of 1991, and the husband of Geraldine Acuña-Sunshine, [6] the co-chair of the Harvard College Fund, [7] who is also senior counsel to Bracebridge Capital. [8] [9] Its chief operating officer is John Spinney.
The fund had a 10% annual return from 1994 to 2016. [4] Initially, it received $50 million from Tom Steyer's Farallon Capital and David F. Swensen, who runs Yale University's endowment. [4] Later, Andrew K. Golden, the manager of Princeton University's endowment, also became a major investor in Bracebridge Capital. [4] By 2012, it had $5.8 billion of assets under management. [4]
By February 2016, it had assets of $10.3 billion, [10] making it the largest hedge fund managed by a woman in the world. [4] It also had more than 100 employees by February 2016. [4]
In March 2016, it was announced that the firm would receive $1.5 billion from the Argentine debt restructuring. [11] It was one of four hedge funds which former president Cristina Fernández de Kirchner called "vultures” and “financial terrorists." [12]
A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as short selling, leverage, and derivatives. Financial regulators generally restrict hedge fund marketing to institutional investors, high net worth individuals, and accredited investors.
Private equity (PE) typically refers to investment funds, generally organized as limited partnerships, that buy and restructure companies. More formally, private equity is a type of equity and one of the asset classes consisting of equity securities and debt in operating companies that are not publicly traded on a stock exchange.
Investcorp is a global manager of alternative investment products, for private and institutional clients. Founded in Bahrain in 1982, the firm has offices in United States, United Kingdom, Saudi Arabia, Qatar, United Arab Emirates, India, China, and Singapore. Investcorp's principal client base is in the six countries of the Gulf Cooperation Council, but it also has institutional clients in North America, Europe, and Asia.
A financial endowment is a legal structure for managing, and in many cases indefinitely perpetuating, a pool of financial, real estate, or other investments for a specific purpose according to the will of its founders and donors. Endowments are often structured so that the inflation-adjusted principal or "corpus" value is kept intact, while a portion of the fund can be spent each year, utilizing a prudent spending policy.
An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include commercial banks, central banks, credit unions, government-linked companies, insurers, pension funds, sovereign wealth funds, charities, hedge funds, REITs, investment advisors, endowments, and mutual funds. Operating companies which invest excess capital in these types of assets may also be included in the term. Activist institutional investors may also influence corporate governance by exercising voting rights in their investments. In 2019, the world's top 500 asset managers collectively managed $104.4 trillion in Assets under Management (AuM).
Distressed securities are securities over companies or government entities that are experiencing financial or operational distress, default, or are under bankruptcy. As far as debt securities, this is called distressed debt. Purchasing or holding such distressed-debt creates significant risk due to the possibility that bankruptcy may render such securities worthless.
The Harvard University endowment is the largest academic endowment in the world. Its value increased by over 10 billion dollars in fiscal year 2021, ending in the largest sum in its history. Along with Harvard's pension assets, working capital, and non-cash gifts, it is managed by Harvard Management Company, Inc. (HMC), a Harvard-owned investment management company.
A vulture fund is a hedge fund, private-equity fund or distressed debt fund, that invests in debt considered to be very weak or in default, known as distressed securities. Investors in the fund profit by buying debt at a discounted price on a secondary market and then using numerous methods to subsequently sell the debt for a larger amount than the purchasing price. Debtors include companies, countries, and individuals.
The Argentine debt restructuring is a process of debt restructuring by Argentina that began on January 14, 2005, and allowed it to resume payment on 76% of the US$82 billion in sovereign bonds that defaulted in 2001 at the depth of the worst economic crisis in the nation's history. A second debt restructuring in 2010 brought the percentage of bonds under some form of repayment to 93%, though ongoing disputes with holdouts remained. Bondholders who participated in the restructuring settled for repayments of around 30% of face value and deferred payment terms, and began to be paid punctually; the value of their nearly worthless bonds also began to rise. The remaining 7% of bondholders were later repaid in full, after centre-right and US-aligned leader Mauricio Macri came to power in 2015.
David Frederick Swensen was an American investor, endowment fund manager, and philanthropist. He was the chief investment officer at Yale University from 1985 until his death in May 2021.
Paul Elliott Singer is an American hedge fund manager, activist investor, philanthropist, and the founder, president and co-CEO of Elliott Management. As of October 2021, his net worth is estimated at US$4.3 billion.
An alternative investment is an investment in any asset class excluding stocks, bonds, and cash. The term is a relatively loose one and includes tangible assets such as precious metals, collectibles and some financial assets such as real estate, commodities, private equity, distressed securities, hedge funds, exchange funds, carbon credits, venture capital, film production, financial derivatives, cryptocurrencies, non-fungible tokens, and tax receivable agreements. Investments in real estate, forestry and shipping are also often termed "alternative" despite the ancient use of such real assets to enhance and preserve wealth. Alternative investments are to be contrasted with traditional investments.
Pacific Alternative Asset Management Company, more commonly known as PAAMCO, is an institutional investment firm focused on hedge funds headquartered in Newport Beach, California with an office in London. Their clients include large public as well as private pension plans, financial institutions, endowments and foundations.
Farallon Capital Management, L.L.C. is an American investment firm that manages capital on behalf of institutions and individuals. The firm was founded by Tom Steyer in 1986. Headquartered in San Francisco, California, the firm employs approximately 230 professionals in eight countries around the world.
Blackstone Credit, formerly known as GSO Capital Partners is an American hedge fund and the credit investment arm of The Blackstone Group. GSO is one of the largest credit-oriented alternative asset managers in the world and a major participant in the leveraged finance marketplace. The firm invests across a variety of credit oriented strategies and products including collateralized loan obligation vehicles investing in secured loans, hedge funds focused on special situations investments, mezzanine debt funds and private equity funds focused on rescue financing.
Elliott Investment Management is an American investment management firm. It is also one of the largest activist funds in the world.
Element Capital Management is an American hedge fund using a global macroeconomic investment strategy, founded in 2005 by Jeffrey Talpins.
Richard Andrew Deitz is an American investment manager. He is the founder and president of London-based investment firm VR Capital Group.
Nancy Zimmerman is an American hedge fund manager. She is the co-founder of Bracebridge Capital, a Boston-based hedge fund with over $12 billion of assets under management as of June 2019. The fund manages investments for foundations, pensions, high net worth individuals and endowments, including those of Yale University and Princeton University. She gained media attention in 1997 for her involvement in the Harvard Institute for International Development's Russian aide controversy and in the 2010s for her firm’s role in Argentina’s debt restructuring. As of 2019, she is the wealthiest female hedge fund founder in the U.S.
The Yale University endowment is the world's second-largest university endowment, after the Harvard University endowment, and has a reputation as one of the best-performing investment portfolios in American higher education. The endowment was established at Yale University, then Yale College, in 1718 from an initial fund of £562 provided by Elihu Yale and has grown to more than $40 billion in value over the ensuing 300 years. It is managed by the Yale Investments Office.
Bracebridge Capital, another holdout hedge fund, will be paid $1.15 billion, representing a 952 percent return on bonds with principal worth $120 million, according to the data.
The four holdout firms, including Aurelius, a hedge fund run by Mark Brodsky, a former trader at Mr. Singer's Elliott Management; Davidson Kempner; and Bracebridge Capital, have agreed not to try to prevent Argentina from raising new money, which it will need to do in order to pay the settlements it has made.