by Saijel Kishan | February 8, 2017, 9:48 AM EST
Eaglevale Partners, the hedge fund co-founded by Marc Mezvinsky, the son-in-law of Hillary and Bill Clinton, closed in December, according to a person with knowledge of the matter.
Eaglevale, based in New York, is in the process of returning money to clients, said the person who asked not to be named because the firm is private.
Eaglevale was started by former Goldman Sachs Group Inc. traders Bennett Grau, Mark Mallon and Mezvinsky in 2011. They had previously worked together on the bank’s global macro proprietary-trading desk.
A spokesman for Eaglevale declined to comment on the news, which was reported earlier by Hedge Fund Alert.
The hedge fund co-founded by Bill and Hillary Clinton’s son-in-law suffered losses tied to an ill-timed bet on Greece’s economic recovery, according to documents reviewed by The Wall Street Journal.
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.
The main fund dropped 3.6% last year, far trailing the 5.7% rise for similar hedge funds tracked by HFR Inc. That followed an Eaglevale gain of 2.06% in 2013 and a loss of 1.96% in 2012, the documents show. It returned 6.24% this January, helped by bets on the U.S. dollar, said a person familiar with the situation, putting it in positive territory since its inception in 2012. . . . .
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.
“Our recent predictions regarding Greek politics have proved incorrect,” Mr. Mezvinsky and the other Eaglevale founders wrote to investors last week, after a radical leftist party won national elections in an upset of Europe’s political order. “We are reticent to render decisive predictions at this time.”
But Eaglevale’s poor investment decisions didn’t end in 2015. One of the fund’s investments, Eaglevale Hellenic Opportunity, lost 90% of its value and was subsequently shut down in mid 2016, according to The New York Times, and Breitbart reported:
Eaglevale picked up $13 million from the CalPERS public employee pension fund in April 2012 to invest it in distressed Greek bonds. At the same time, Goldman Sachs CEO Lloyd Blankfein and Chelsea Clinton’s former boss Marc Lasry both bought Greek bonds.
Despite all of the work by the U.S. State Department in favor of a bailout that would have been a home run for Greek bondholders, the German government opposed a blanket bail-out and Greek bonds crashed even lower in price. It is believed that CalPERS suffered a 100 percent loss on its investment.
Breitbart’s independent reporting does not have a 100% accuracy rating, but much of that article reports on the incestuous relationship between Goldman-Sachs and the Clinton family and is sourced through the ‘credentialed media.’
As a reminder, 2013, Institutional Investor proclaimed Mezvinsky “a hedge fund rising star”…
In late 2011, Marc Mezvinsky co-founded New York-based, macro-focused hedge fund firm Eaglevale Partners with Bennett Grau and Mark Mallon, two Goldman Sachs Group proprietary traders whom he’d gotten to know when they all worked at the bank. Best known as the husband of Chelsea Clinton, Mezvinsky, 35, who has a BA in religious studies and philosophy from Stanford University and an MA in politics, philosophy and economics from the University of Oxford, has been quietly building his finance career. Before launching his own firm, the longtime Clinton family friend was a partner and global macro portfolio manager at New York- and Rio de Janeiro-based investment house 3G Capital. Eaglevale manages more than $400 million.
Alas, he was anything but, and instead of having a real grasp of macroeconomic events, or how to – you know – hedge, he decided to dump millions in Greece just before the country entered a death spiral that culminated with its third bailout, capital controls, insolvent banks and a terminally crippled economy.
Meanwhile, things went from terrible to abysmal for both the clueless hedge fund manager and his LPs, and as the NYT reports, Hillary Clinton’s son-in-law is finally shutting down the Greece-focused fund, after losing nearly 90% of its value. Investors were told last month that Eaglevale Hellenic Opportunity would finally be put out of its misery and would shutter.
The Editor of The First Street Journal does not usually go in for conspiracy theories, but the idea that rational investors would plow $400 million — admittedly, not a large sum when the subject is Wall Street and investment funds — into a fund with a poor track record, and leave it there, in 2016, after the firm’s poor performance the previous year strikes me as rather unusual, unless there are non-economic reasons to do so. When I see that the fund is shutting down, and returning what remains of their money to investors, the month after Mr Mezvinsky’s mother-in-law unexpectedly lost the presidential election, the first thought that comes to my mind is that: there’s no more influence to buy by investing with Eaglevale.
Naturally, Nobel laureate and liberal sycophant Paul Krugman would say that the Clinton campaign was as pure as the wind-driven snow, blaming Russian hacking for Hillary Clinton’s loss, but here’s this one, from Politico — not exactly a right-wing group — two days before the election:
In a hacked email, ex-Clinton aide Doug Band claims Marc Mezvinsky traded on family ties to help his fund.
By Kenneth P. Vogel | 11/06/16 09:19 PM EST
Chelsea Clinton’s husband used his connections to the Clinton family and their charitable foundation to raise money for his hedge fund, according to an allegation by a longtime Clinton aide made public Sunday in hacked documents released by WikiLeaks.
Marc Mezvinsky extended invitations to a Clinton Foundation poker event to rich Clinton supporters he was courting as investors in his hedge fund, and he also relied on a billionaire foundation donor to raise money for the fund, according to the WikiLeaks documents. They also assert that he had his wife Chelsea Clinton make calls to set up meetings with potential investors who support her family’s political and charitable endeavors.
The documents — a memo and an email — were written in late 2011 and early 2012, respectively, by ex-Clinton aide Doug Band. They were sent to family confidants including John Podesta, who is now serving as Hillary Clinton’s presidential campaign chairman, and Cheryl Mills, who was Clinton’s State Department chief of staff.
They were hacked from Podesta’s Gmail account and made public Sunday in the latest batch of Podesta emails released by WikiLeaks.
At the time Band wrote them, Mezvinsky, who had been an investment banker at Goldman Sachs, was working with two partners to raise capital to launch a hedge fund of their own called Eaglevale Partners. The word among rich Clinton backers on Wall Street was that the family would look favorably on investments in Eaglevale, a major Manhattan investor told POLITICO.
That sentiment seems to be corroborated by the newly released WikiLeaks, which could provide fodder for critics, including Clinton’s Republican rival Donald Trump, who argue that the Clintons have used their charitable foundation to try to enrich themselves.
I’m sorry, but this whole thing just plain stinks. I don’t know if Donald Trump will turn out to be a good president or not, but we ought to thank the Lord every day that Mrs Clinton lost the election. She’s a crook, and her whole family are crooks. And it seems that the investors in Eaglevale thought so as well; that’s why they invested in a failing fund, and that’s why they want out now that it won’t pay off politically.
Cross-posted on The First Street Journal.