While the US media remains fixated on the fact that Donald Trump did not pay taxes in 1995, Sputnik News reports, a major scandal has been unfolding with the State Department mysteriously losing an email that documents potential insider trading on Greek bonds by Hillary Clinton’s son-in-law Marc Mezvinsky.
As we detailed just 6 months ago, Hilary Clinton's son-in-law shuttered his hedge fund in May after a 90% loss…
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 in Maythat Eaglevale Hellenic Opportunity would finally be put out of its misery and would shutter.
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All of which is rather shocking given that he may have – allegedly – received insider information on just what was occurring within Troika discussions… But now, as SputnikNews.com reports,
A notorious email between State Department aide Jake Sullivan and a Clinton Foundation employee exposing financial conflicts of interest by the former Secretary of State has “mysteriously” disappeared.
The Washington Examiner described the missing email as containing “an attachment memo about Greek bonds – a significant detail given the heavy investments Clinton’s son-in-law, Marc Mezvinsky, was making in the Greek economic recovery during the same period” that was released outside the chain of the State Department where it could potentially have been passed along to Chelsea Clinton’s husband.
The revelation resulted from a Freedom of Information Act request for a July 2012 email from the State Department’s Jake Sullivan to Amitabh Desai, A Clinton Foundation employee, and Justin Cooper, an aide to Bill Clinton, titled “Solidarity Bonds Greece Revised.” When a lawyer requested that the State Department provide a copy of the attachment, federal attorneys said that the State Department “does not have” the original email.
At the time that the email was sent outside the State Department, Mezvinsky, a hedge fund manager, was openly advertising that he had a secret strategy for making money by “betting that the Greek bailout would raise the price of bonds” – an advertisement that led many large investors tied to the Clinton Foundation to put their money with his hedge fund.
The likelihood that Marc Mezvinsky received and used this insider information to his advantage is questionable as his $325 million hedge fund quickly lost 90% of its portfolio value before going bankrupt at a near total loss for his investors, but it does point once again to the complex conflict of interests of Hillary’s wealthy inner-circle and the ease at which the former Secretary of State could have used her office for the enrichment of herself and others.
A spokesperson for the conservative group Citizens United that filed the Freedom of Information Act claim said of the failure by the government to provide the original document that, “Hillary Clinton truly left her mark on the State Department – why do the most important emails always end up missing? The State Department should explain to the American people why this information is unavailable.”
The group Citizens United holds a negative connotation in American political parlance with the group serving as the lead plaintiff in the case to abolish limits on SuperPACs ability to collect money from millionaire and billionaire donors to effectively buy elections and influence the political system.
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For both the fund's clients and the State Department, this seems appropriate…