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February 08, 2017  

Mezvinsky and Partners Disband Eaglevale

Eaglevale Partners, a global-macro shop co-founded by Hillary Clinton’s son-in-law, Marc Mezvinsky, is no longer in business.

The New York firm shut down last month, sources said. Eaglevale, led by Mezvinsky and two former colleagues from Goldman Sachs, enjoyed early backing from blue-chip names including Goldman chairman Lloyd Blankfein and Avenue Capital founder Marc Lasry. But the flagship Eaglevale Partners Fund suffered from weak performance, and last year the firm shuttered a small vehicle focused on investments in Greek debt after it lost an estimated 90%.

One source said Eaglevale “never got scale,” suggesting that it failed to gather enough assets to be profitable — despite Mezvinsky’s obvious advantages in the fund-raising arena. On a gross basis, the firm was managing $326 million at yearend 2015 — the bulk of it in a separate account for an institutional client. Eaglevale’s two funds accounted for only about $50 million of the total.

At that point, Eaglevale employed nine people. There’s no word on what Mezvinsky or his partners, Bennett Grau and Mark Mallon, plan to do next.

Grau, Eaglevale’s chief investment officer, is a veteran currency trader who began his career at commodity-trading shop J. Aron & Co., where Blankfein also got his start. For years, Grau led Goldman’s highly profitable global-macro proprietary-trading business, which trained a generation of macro traders — including Mallon and Mezvinsky, who is married to Chelsea Clinton.

Eaglevale, founded in 2011, placed big bets on Greece’s government bonds and bank debt — positions that generated sharp losses in 2014 and 2015. The firm raised about $25 million for a niche vehicle dubbed Eaglevale Hellenic Opportunity Fund, which lost 48% in 2014, according to The Wall Street Journal. By mid-2016, ongoing losses had wiped out almost all of the fund’s assets, prompting the manager to unwind the vehicle.

During the 2016 presidential election, hacked e-mails from Hillary Clinton’s campaign staffers including chairman John Podesta led to reports that Mezvinsky was using his family connections to raise money from supporters of Clinton’s candidacy. They included Lasry, whose hedge fund firm once employed Chelsea Clinton.

Mezvinsky left Goldman in 2008 to run a global-macro fund at 3G Capital. Grau and Mallon exited in 2011 after the bank dismantled its prop-trading desks in response to the Dodd-Frank Act’s Volcker Rule.