Marc Mezvinsky, Hillary Clinton’s son-in-law, and his partners at hedge fund Eaglevale Partners will reportedly close the Greece-focused hedge fund they set up two years ago after it lost 90 percent of its value.
The New York Times, citing two anonymous investors close to the matter, reported:
Investors were told last month that the fund would close. The fund, Eaglevale Hellenic Opportunity, had raised $25 million from investors to buy Greek bank stocks and government debt. Eaglevale Partners, a Manhattan hedge fund firm founded by Mr. Mezvinsky and two former Goldman Sachs colleagues, raised money for the Hellenic fund at a time when some on Wall Street had hopes for a revival in the Greek economy. For a time, Mr. Mezvinsky appeared at hedge fund conferences promoting the Greece investment thesis. ... It is not clear why Eaglevale waited until this year to close the Hellenic fund, which already had lost about 40 percent of its value by early last year.
Greece’s debt crisis began in 2010, and the country received three bailouts in a five-year span. Greece was under particularly intense economic strain last year, when the country’s government eventually agreed to enact some economic reforms in exchange for a new bailout. Greece remains on rocky economic terrain.
According to the Times, Mezvinsky and his partners took an optimistic tone on Greece’s path toward a "sustainable recovery" in a 2014 letter to investors, though at the end of the year some leaders began to express doubt regarding Greece’s economic future.
Marc Mezvinsky is married to Clinton’s daughter Chelsea and formerly worked at Goldman Sachs. Several Goldman partners were among the early investors in Eaglevale Partners, including current CEO Lloyd Blankfein. Mezvinsky and his partners started raising money for the Eaglevale flagship fund in 2011.