MHR FUND MANAGEMENT LLC

MHR Fund Management LLC is an investment management firm based out of New York City, New York. The company was originally established in 1996 by founder Mark H. Rachesky, who is still with the company today acting as its President and Investment Chief. MHR Fund Management utilizes a fundamental methodology to make its investment decisions, allocating its assets primarily in the distressed securities of mid cap companies. The firm describes its approach as being “highly differentiated, control-focused, private equity” and actively invests, seeking to “exert control or significant influence on its portfolio companies.” The company invests in the fixed income and public equity markets within the United States, allocating its assets across a variety of sectors. MHR Fund Management invests most heavily in the consumer discretionary sector, which alone makes up approximately two thirds of its entire asset allocations, and also invests in the information technology, making up another fifth of its allocations, and industrials sectors, among other sectors to a lesser degree, in order of decreasing allocation. The company keeps its holdings for an average of 22 quarters and, in the most recent quarter, MHR Fund Management had a turnover rate of 12.5%. MHR Fund Management’s top holding in Lions Gate Entertainment Corp makes up the bulk of its allocated assets at 64.8% of its total. The company operates with 22 employees of which 16 are investment professionals. MHR Fund Management holds over $6.1 billion in total assets under management spread across 14 accounts, all of which are discretionary. Both of the firm’s total number of accounts and total assets under management have been increasing in recent years with its total managed assets growing from $5.1 billion back in 2012 to its current amount. The company currently caters solely to pooled investment vehicles and takes fees in the form of a percentage of assets and performance based fees.