The Wall Street Journal has a revealing report on the hedge fund Eaglevale Partners LP, which is run by Hillary Clinton's son-in-law, Marc Mezvinsky. The fund, it turns out, bet big on a turnaround in the Greece economy -- and lost.
"Eaglevale Partners LP, founded by Marc Mezvinsky and two former colleagues from Goldman Sachs Group Inc., told investors in a letter sent last week they had been 'incorrect' on Greece, helping produce losses for the firm’s main fund during two of the past three years, according to the letter. Mr. Mezvinsky married Chelsea Clinton, the former first daughter, in 2010," reports the Journal.
"The main fund dropped 3.6% last year, far trailing the 5.7% rise for similar hedge funds tracked by HFR Inc. …
"A smaller Eaglevale fund focused only on Greece plunged 48% last year, said the person familiar with the situation, hurt by the belief Greece’s economy will see a quick rebound."
But perhaps most revealing is this fact: The CEO of Goldman Sachs is a key investor in the fund:
Among investors in Eaglevale’s main fund is Goldman Sachs Chairman and Chief Executive Lloyd Blankfein , people familiar with the matter said.
Blankfein appears key to the enterprise because, well, Goldman Sachs has helped raise capital for the fund:
From the start, Eaglevale’s moves have been closely followed, investors said, partly because of Mr. Mezvinsky’s family connection. Ahead of the firm’s launch, Goldman Sachs hosted group sessions for prospective investors that drew standing-room-only crowds. The investment bank is one of the firm’s prime brokers, which help hedge funds execute trades and introduce them to potential backers.
The founders’ pedigree helped raise them money, investors said. One of Mr. Mezvinsky’s partners, Bennett Grau, got his start at J. Aron & Co., the commodity-trading arm that produced many of Goldman Sachs’s current leaders, including Mr. Blankfein.
Of course being related to a former president and perhaps future president has apparently been helpful to Mezvinsky's enterprise as well.
Daniel Halper is the author of Clinton, Inc.: The Audacious Rebuilding of a Political Machine.