Hillary Clinton Son-In-Law's Hedge Fund Shuts Down Greek Fund After 90% Loss

Tyler Durden's picture

Despite having Goldman Sachs CEO Lloyd Blankfein as an investor and being Bill and Hillary Clinton's son-in-law, Marc Mezvinsky (and two former colleagues from Goldman Sachs who manage Eaglevale Partners hedge fund) told investors in a letter last February they had been "incorrect" on Greece, generating staggering losses for the firm’s main Eaglevale Hellenic Opportunity, a/k/a the "Greek recovery" fund during most of its life. By 'incorrect' the Clinton heir apparent meant the $25 million Eaglevale Greek fund had lost a stunning 48% in 2014.

Which is not to say the larger fund it was part of is doing any better: as of last February, Eaglevale had spent 27 of its 34 months in operation below its high-water mark. We are confident that 13 months later the numbers are 40 out of 47, respectively.

 

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 closure comes as the worst possible time: we are confident that Donald Trump will be quick to work it into his political attack routine.

Mr. Chelsea Clinton and his partners began raising money in 2011 from investors for the firm’s flagship fund. Since then, that portfolio has posted uneven performance. A Stanford University graduate, Mr. Mezvinsky worked at Goldman for eight years before leaving to join a private equity firm. He left that job to form Eaglevale with two longtime Goldman partners, Bennett Grau and Mark Mallon. The hedge fund firm is named after a bridge in Central Park.

As noted above, some of the firm’s earliest investors were Goldman partners, including Lloyd C. Blankfein, Goldman’s chief executive officer, who let Eaglevale use his name in marketing the flagship fund. Ironically this is in addition to the hundreds of thousands of dollars that Goldman paid to Marc's mother-in-law. One almost wonders who "benefits" Goldman was seeking to get out of this particular relationship.

But on a less sarcastic note, we agree with the NYT that it is not at all clear why Eaglevale waited until this year to close the Hellenic fund, which already had lost about 40% of its value by early last year.

Perhaps it was just hope that the Greek people would simply pick up and rebuild the devastated economy from scratch, ideally without getting paid (the word slavery comes to mind), thereby miraculously rescuing his investment. In letters to investors in 2014, Mezvinsky and his partners expressed confidence that Greece would soon be on the path to a “sustainable recovery.” But by the end of that year, Eaglevale’s leaders began to acknowledge that their perspective on the situation in Greece may have been wrong. The fund had earlier stopped taking in new money.

We will conclude by stealing the NYT's tongue in cheek humor:

The one silver lining for the fund’s investors from all of this is that they will have a somewhat larger tax loss on investments to claim next year.

True: it's all funny if one assumes that none of the people who were invested in Mezvinsky's pet fund actually needed the cash (we doubt Blankfein will lose sleep over a few million). For all those others who actually did, the joke's on them.

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holdbuysell's picture

No worries...he's got the Clinton slush fund to tap for any cash needs.

nmewn's picture

Good thing he can count on moar momma daddies money for Faaarrreee!

greenskeeper carl's picture

Wow look at that guy. Couldn't have happened to a nicer little shitweasel. Can you fucking imagine being married to their daughter? God damn. If she is half the sociopath they seem to be, he'd better be careful she doesn't try to trade him in for the richer model by sniffing him out in his sleep

Manthong's picture

‘sno big deal,, probably hedged with mass short from goldman sucks

AlaricBalth's picture

I would like to know if one of the clients of this hedge fund was the Clinton Foundation.

"Don't worry about it kid, it wasn't our money. We just acted as if it was."
Bill Clinton to his son-in-law.

Manthong's picture

good observation... hell yes.. hedged every way back and forth to Sunday,

HardlyZero's picture

So, he is moving on now, to the Foundation ?

Should be slushy, perky, and soft.

Manthong's picture

Roger Stone seems to think that the Little Willy won’t last through  the election or impending indictment…

Look at him.. is it the coke or the Viagra or the hoes that have made him emaciated beyond belief?

..it sure as hell wasn't Hillary,

 

D Nyle's picture

Trump and Bill are the same age, Trump looks great but I think Clinton has aids or Syphilis (was considered the first black president)

Government needs you to pay taxes's picture

That doofus is how Chelsea was intended to make her bones as a capo in the Clinton family.  Using her family brilliance, she misunderstood and jumped his bones instead.

Manthong's picture

Hey.. I have been around the block a few times.

…there is likely no bad biological thing that Clinton does not have.

 

Four chan's picture

generational bags of shit , how quaint. 

jcaz's picture

ZERO chance that Bill and Hillary had any of their money in this deal-  it wasn't fixed.......

mkkby's picture

Jeeezus... Chelsea is even uglier than her mother.  Never would have thought that possible.

Only idiots lost money on the greece fund.  The recovery only comes AFTER they default on the debt.  As long as they kick the can investors will be losing every penny spent on this fraud/socialist stealing machine.

AlaricBalth's picture

Like father, like son?

"In March 2001, Marc Mezvinsky's father, Ed Mezvinsky was indicted and later pleaded guilty to 31 of 69 felony charges of bank fraud, mail fraud, and wire fraud. Nearly $10 million was involved in the crimes. Shortly after his indictment, he was diagnosed with bipolar disorder, but the judge at his trial disallowed a mental illness defense. He served his time at Federal Prison Camp, Eglin. Mezvinsky, Federal Bureau of Prisons # 55040-066, was released in April 2008. He remained on federal probation until 2011, and as of 2010 still owed $9.4 million in restitution to his victims."

https://en.m.wikipedia.org/wiki/Edward_Mezvinsky

Paul Kersey's picture

Trump's daughter's father in law, Charles Kushner, also spent some time in the slammer.  Chris Christie sent him there.  Is it ironic that our Presidential candidates' daughters married the sons of fellons, or is that just the current state of politics, American style?   

DontGive's picture

Birds of a feather, flock together.

Not surprised he married into the Cuntons.

otschelnik's picture

Hey, I know you!  You're king of the Visgoths! 

True Blue's picture

Clearly, Slick Willie is a zombie and starving to death because he is surrounded by brainless progressives.

Chauncey Gardener's picture

Maybe he is HIV positive after all those tawdry island visits...

Sages wife's picture

I think the Clinton money was the remaining 10 points.

booboo's picture

Like a fucking John Carpenter movie, I swear Webb Hubble is crawling out of that face of hers.

Four chan's picture

that baby has to have one fucked up face.

Yes We Can. But Lets Not.'s picture

It could not be more obvious.

JLee2027's picture

His "fee" to lose the money was probably 25% or so. Maybe higher.

Professor Fate's picture

LOL Greenskeeper.  Shitweasel. What a great word.  I'd give you +10 if I could.  Shitweasel.  I'm always looking for a new moniker to describe the worm in the Whitehouse and I'm thinking Shitweasel might just be perfect.  On another note...Jesus, that is one fuckin' ugly toad he's married to.  Too ugly even for a Shitweasel.  

 

Fate the Magnificent
"Push the Button, Max" 

garcam123's picture

Boy what a looker!  They probably can't keep a window or a mirror in one piece in their house.  She ain't just ugly.....she's YUUUGLY to steal a word from ol Trumpo.  I'd shoot myself before I'd bed that dog....you know coyote drunk! you'd chew your arm off before you'd wake that thing.  I don't need the money.  Good luck you stupid clown.  He's probly in trainin with old slick willie, banging everythng he can get his hands on for big cash.

She's about the worst window breaker I've seen! Lordy lordy!

Paul Kersey's picture

"She's about the worst window breaker I've seen! Lordy lordy!"

Guess you haven't laid eyes on the mom.

sessinpo's picture

garcam123   Boy what a looker! They probably can't keep a window or a mirror in one piece in their house. She ain't just ugly.....she's YUUUGLY to steal a word from ol Trumpo.

-----

I still  prefer  Fugly, short for fucking ugly.

Zero Point's picture

Picky bastard, I'd fuck 'er. Thee are no problems in life that can't be solved by merely lowering ones standards.

sam i am's picture

 

Tell Eurovision in 1944 Stalin deported Crimean Tatars to protect them from punishment for Nazi war crimes, by Scott

http://thesaker.is/tell-eurovision-in-1944-stalin-deported-crimean-tatar...

True Blue's picture

Couldn't have happened to... what exactly is happening to him? His investors are screwed, but did that alter his pay or bonuses? How much 'creative accounting' is involved? How much was actually 'invested' in Greece, vs how much was 'invested' in the little Clintonista's pockets?

Makes one think of the movie 'The Producers' -intentionally investing in the biggest farce he could find at the time -Greece?

Speaking of which, how much money can a person make from a failed bid for political office? And How are you going to payback that unsecured 'loan' from Goldman there, Mr. Cruz?

As for Chelsea --- for god's sake, don't get her wet or feed her after midnight...

Pandelis's picture

that all make sense ... otherwise, anyone would think how can someone so connected get it so wrong.

 

but your explanation makes real sense .... find an excuse to cheat investors out of their money ... it seems a very easy trick out of his father playbook

Miffed Microbiologist's picture

He does appear to have made the ultimate in marital hedges but with the body count in Clinton Past, he probably doesn't get much sleep. Waking up from a nightmare and seeing what's next to him must be a tad disconcerting as well. But it must be nice to know his wife doesn't care about money so transitioning to dumpster diving would be seamless if need be.

Miffed;-)

Manthong's picture

Dear..

You do not want to know what I would do to my man things before I would ever consider occupying any of that territory.

Manthong's picture

And oh..  quite sleep is not an option in a criminal and violent family.

NidStyles's picture

That's why they all have those bags under their eyes.

Manthong's picture

as did the bloated Marlon Brando.

max2205's picture

Somebody needs to make sure he Corzine the funds 

Blankone's picture

Re nmen:  "Good thing he can count on moar momma daddies money"

I doubt much of he losses were his or the Clinton's money.  The token amounts from Goldman types were probably repaid in other ways and used to make it look legit.

He collects fees win or loss.  Someone was likely preset on the other side of his trade(s) to profit and this was just a scam to move more money to his tribe members.

He is someone's bitch though.  No man who was not owned by someone (or incompetent) would marry Chelsa.  No way.  Someone has been carrying him and he had to marry the Clinton or he is an just incompetent and he married her (no one else was going to) to use the association for cover for his ripoff'sj.

JamesBond's picture

WTF?!?  going long on Greece?!?  

 

1)  He's a total mental retard

2)  He was promised that the central bankers would do his fund right

 

In anycase....   LMAO

 

jb

nmewn's picture

One of Hillarys! key economic team "members"...lmao!

NotApplicable's picture

He made the same "insiders bet" that Corzine did with MFG's bank accounts.

Somebody was looking for a big fucking payday that didn't quite play out. Poor judgement? Or the next bunch of suckers set up by even bigger fish?

Pantsuit might just have to go hang out with Ken Lay soon.

Manthong's picture

mark my words..

it will be a suit in the color of bright orange.

swamp's picture

Money transfer called a loss.
Do people really believe this dog and pony story?

snodgrass's picture

His father pleaded guilty to fraud in 2001 and spent five years in prison for scamming $10 million out of family and friends in a Ponzi scheme.

Déjà view's picture

Rising Star...

Shooting Star in his foot?

Déjà view's picture

Icarus...

Another high flyer with wings of wax?

SidSays's picture

IS IT JUST ME OR DOES THAT CHICK WITH THE BABY LOOK LIKE WEBSTER HUBBELL OR WHAT?

Implied Violins's picture

Huh. I wonder what the baby looks like. Maybe she gave birth to her own brother...