The hedge fund co-founded by Marc Mezvinsky, Bill and Hillary Clinton’s son-in-law, suffered losses following misplaced faith in Greece’s economic recovery. Just two years after it was launched, Eaglevale Partners LP, is rumored to be generating staggering losses for the firm’s main Eaglevale Hellenic Opportunity. Mezvinsky, and two Goldman Sachs colleagues who manage the fund with him, told investors in a letter last February that they had been “incorrect” on Greece, meaning that the fund focused on Greece had plunged 48 percent in 2014 losing 90 percent of its value in two years.
In letters to investors in 2014, the founders of the fund had expressed confidence that Greece would soon be on the path to a “sustainable recovery,” however by the end of the year they acquiesced that their perspective may have been wrong. “We are reticent to render decisive predictions at this time,” said the leaders of the group.
The main fund dropped 3.6 percent last year, following Eaglevale’s gain of 2.06 percent in 2013 and loss of 1.96 percent in 2012. The fund had raised $25 million from investors to buy Greek bank stocks and government debt, mainly because of the pedigree of the founders.