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.
Last week, Massachusetts senator Elizabeth Warren threatened to derail the omnibus continuing resolution (“cromnibus”) that funds most of the government through the end of the fiscal year. She objected to the elimination of an obscure rule in the Dodd-Frank financial reform law known as “push-out.” Under Dodd-Frank, federally backed financial institutions must spin their “swap trades” off to uninsured subsidiaries; after cromnibus, they will no longer have to do this.
One of the most interesting aspects of the 2013 Virginia gubernatorial race between Democrat Terry McAuliffe and Republican Ken Cuccinelli was an ad sponsored by the Conservative War Chest tagging McAuliffe as part of the “Gang of Five.” According to the ad, this group -- De
Around 7:00 p.m. this evening, as the polls closed in Virginia’s 7th Congressional District, and as a populist, anti-Big Government and anti-Big Business challenger was about to record an amazing upset of the House majority leader in the GOP primary, an email arrived in TWS inboxes.
In Washington, the wail of voices crying "shutdown" is so loud one can hardly hear anything else this morning. But the further away you get from our panicked capitol, the less alarmed people seem to be. On Wall Street, before the opening, Bloomberg headlined that:
Eliot Spitzer, the former governor of New York who resigned in 2008 after it was revealed he was a client of a prostitution ring, has a new campaign ad for his run for New York City comptroller in which Spitzer admits he "failed. Big time." The 60-second ad, which features one news anchor saying the "Sheriff of Wall Street is back," mainly focuses on Spitzer explaining why he'd like to run for comptroller, which controls the city's budget as well as the pension funds for city workers.
President Barack Obama pledged this morning in his weekly radio address to continue to crackdown on "irresponsible behavior."
"Here in America, we know the free market is the greatest force for economic progress the world has ever known. But we also know the free market works best for everyone when we have smart, commonsense rules in place to prevent irresponsible behavior," Obama began.
Joe Biden, speaking at a campaign event in Virginia:
"Look at their budget, and what they are proposing," Biden said. "Romney wants to let--he said in the first hundred days, he's going to let the big banks once again write their own rules. Unchain Wall Street. They gonna put y'all back in chains."
Massachusetts Senate candidate Elizabeth Warren backed away from her statement that supporters of hers from Wall Street tell her she could "save capitalism." The Boston Herald reports on the Democratic candidate's walkback: