The path of the hedge funds that arrived in Puerto Rico

On July 14, 2015, Joel Cintrón Arbasetti (CPI) published “La trayectoria de los fondos de cobertura que llegaron a Puerto Rico”: SEC and press profiles of Ad Hoc Group of Puerto Rico firms and other holders. The group and La Fortaleza/GDB refused to disclose membership detail; leaders cited: Fir Tree Partners, Monarch, Perry Capital, Brigade, Centerbridge, Davidson Kempner and Stone Lion.

Fir Tree (Jeffrey Tannenbaum): ~$8 billion under management; invested in restructured Greek debt and Argentina (~20% in 19 months); allied in the 2008 Lehman bankruptcy against Angelo Gordon, Knighthead and D.E. Shaw (also with a role in PREPA). Stone Lion: took part in Detroit and Jefferson County (AL); Julio A. Cabral-Corrada (ex Morgan Stanley) worked on the $3.5 billion 2014 issue then joined the firm; ~$2 billion AUM and $500 million set aside for PR debt (Caribbean Business). Perry Capital (Richard Perry): >$11 billion; invested in Dade Paper/Rock-Tenn/KapStone and in Doral’s 2007 recapitalization with D.E. Shaw, Canyon and Goldman.

Monarch: >$5 billion; gains in Greece/Spain/Portugal. Davidson Kempner: ~$25.4 billion; joined the ad hoc in Aug 2014; Lehman/Greece/Argentina history. Centerbridge (Mark Gallogly, Obama Economic Advisory Board): ~$25 billion; focus on bankruptcies/restructurings (e.g. Energy Future Holding). Brigade: ~$14 billion (Patrick Kelly / Donald Morgan).

Outside the ad hoc, CPI summarizes Aurelius (Argentina litigation $1.3 billion; Greece pressure), Och-Ziff (~$47.9 billion Mar 2015; opposed Greek bailouts), DoubleLine ($20 million in Retiro; Gundlach), Fortress ($69.9 billion; Acrecent in SJ with Parkfield), Canyon (>$23 billion; charter-school link), Maglan ($60 million; buying since 2013), D.E. Shaw (>$36 billion; PREPA), Marathon (~$10 billion; Bruce Richard on PREPA), Avenue ($1.1 million in PR bonds maturing 2035 per a 2014 report), Candlewood (~$2.9 billion) and Sound Point (~$6.5 billion Mar 2015).

History in other crises ≠ a crime in Puerto Rico. AUM and “personal fortune” figures are those CPI reports from SEC/foreign press; they are not Commonwealth disbursements. Cousin: 577.