Chelsea Clinton’s husband Marc Mezvinsky is a Goldman Sachs alumnus; in 2014, he founded Hellenic Opportunity, a hedge fund that raised $25M to bet on distressed assets from Greece’s collapsed economy, wagering that the country’s investors would force it to make deeper cuts to finance payments on the debts.
The fund lost 40% of its value in its first year. It shut down last month, having lost 90% of its investors’ cash (Mezvinsky will have earned $250,000/year to manage the fund, assuming he had the standard 2% hedge fund deal).
Either Mezvinsky’s investors had remarkable confidence in him, or his fund was structured with long lock-ins that prevented them from getting out as the fund drained out.
Eaglevale Hellenic Opportunity specialized in buying up Greek stocks and government debt, betting the country would finally get its house in order and come roaring back. Mezvinsky argued in 2014 that, despite many signs to the contrary, Greece would soon be on the road to “sustainable recovery” and investors would be able to take advantage.
Instead, the Greek economy has simply remained terrible, and the country recently had to negotiate yet another debt deal with its EU neighbors to avert a total collapse.
Chelsea Clinton’s Husband Closing Hedge Fund After Losing 90 Percent Of Its Money
[Blake Neff/Daily Caller]
(Image: Turkey Vulture , Andrea Westmoreland, CC-BY-SA)
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(via Naked Capitalism)