Another hedge fund is sweeping up newspapers. This time, journalists are cautiously optimistic

Hedge fund ownership of newspaper groups typically spells doom for the newsrooms. Just ask some of the former employees at the Denver Post who famously revolted against owner Alden Global Capital's order to cut staff.

But Chatham Asset Management's takeover of McClatchy — scheduled to be finalized on Tuesday — is actually inspiring some cautious optimism among its journalists. That's because Chatham has agreed to allow all employees to keep their jobs while honoring existing union contracts under the hedge fund's plan to pay $312 million for the newspaper conglomerate.

It's a stark contrast to hedge funds' habit of job cutting when they take ownership of newspapers. Indeed, a bid for McClatchy by Alden Global Capital — owner of more than 50 papers in addition to the Denver Post — "contemplated" the elimination of about 1,000 jobs and the rejection of union contracts, according to a court filing obtained by McClatchy journalist Kevin G. Hall.

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