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Chelsea’s ‘Distressed Debt’ Hedge Fund

As we know from media reports, Chelsea Clinton works for the “Avenue Capital Group — a New York hedge fund run by Clinton friends.”

Oddly enough, our watchdog media has been very quiet about the nature of this “hedge fund,” which it turns out specializes in the “distressed debt market.”

From their website:


Chelsea Clinton greets guests at the Kalihi Palama Health Center clinic, Friday, Feb. 15, 2008. in Honolulu as she campaigns for her mother, Hillary Rodham Clinton.

Avenue Capital Group – Firm

Avenue Capital Group was founded in 1995 by Marc Lasry and Sonia E. Gardner.  Pioneers in the distressed debt market, Mr. Lasry and Ms. Gardner have successfully invested in the public and private debt and equity securities of distressed companies across a variety of industries for over two decades.

Prior to founding Avenue, Mr. Lasry and Ms. Gardner founded Amroc Investments, LLC.  Amroc began in 1989 as a $100 million distressed debt investment partnership organized by Mr. Lasry and Ms. Gardner in association with the Robert M. Bass Group, Inc.

Headquartered in New York, with offices in London, Luxembourg, Munich, and eight offices throughout Asia, the firm manages assets valued at approximately $20.1 billion as of December 31, 2007. Avenue draws on the skills and experience of approximately 350 employees and its Partners, Marc Lasry and Sonia E. Gardner, who have spent virtually their entire careers in the field of distressed investments.

In case you are wondering, here is a description of distressed debt (or securities), courtesy of Wikipedia:

Distressed securities

Distressed securities are securities of companies or a nation’s central bank that are either already in default, under bankruptcy protection, or in distress and heading toward such a condition. When it comes to fixed income, these types of securities are below investment grade, and can include corporate credit as well as emerging market government fixed income…

When companies enter a period of financial distress, the original holders often sell the debt or equity securities of the issuer to a new set of buyers. In recent years, private investment partnerships such as hedge funds have been the largest buyers of distressed securities. Other buyers include brokerage firms, mutual funds, private equity firms, and specialized debt funds (such as collateralized loan obligations) are also active buyers.

Investors in distressed securities often try to influence the process by which the issuer restructures its debt, narrows its focus, or implements a plan to turn around its operations. Investors may also invest new capital into a distressed company in the form of debt or equity…

Investors in distressed securities typically must make an assessment not only of the issuer’s ability to improve its operations but also whether the restructuring process (which frequently requires court supervision) might benefit one class of securities more than another.

So Avenue Capital profits from downturns in the economy and foreclosures and bankruptcies.

Consequently, it is no surprise that Hillary and her mom (and her father) have been so busy trying to talk us into a recession when we are not in one. They have a vested interest.

(And of course it is the mantra of our the Democrat party and its minions in the media whenever there is an election coming up and Republicans control the White House.)

By the way, lest anyone think it is an exaggeration to say Avenue Capital is run by friends of the Clintons, here are some of their political contributions as listed by the Federal Election Commission:

Individual Contributions Arranged By Type, Giver, Then Recipient

Contributions to Political Committees

BALSAM, SHERI
MERRICK, NY 11566
AVENUE CAPITAL GROUP/CFO

CLINTON, HILLARY RODHAM
VIA HILLARY CLINTON FOR PRESIDENT

03/06/2007
2300.00
27930580246

BARANELLO, ALANE
MANHASSET, NY 11030
AVENUE CAPITAL GROUP/HUMAN RESOUR

CLINTON, HILLARY RODHAM
VIA HILLARY CLINTON FOR PRESIDENT

04/10/2007
500.00
27990273758

BURNAZIAN, STEPHEN E
NEW YORK, NY 10022
AVENUE CAPITAL GROUP/ANALYST

CLINTON, HILLARY RODHAM
VIA HILLARY CLINTON FOR PRESIDENT

06/18/2007
500.00
27990274240

06/30/2007
500.00
27990274241

D’ADDARIO, RICHARD C
WESTPORT, CT 06880
AVENUE CAPITAL GROUP/SENIOR PORTF

CLINTON, HILLARY RODHAM
VIA FRIENDS OF HILLARY

11/29/2005
1000.00
26020090520

ERIC, ROSS
WESTPORT, CT 06880
AVENUE CAPITAL GROUP/ATTORNEY

CLINTON, HILLARY RODHAM
VIA HILLARY CLINTON FOR PRESIDENT

04/09/2007
500.00
27990275142

GARDNER, SONIA
NEW YORK, NY 10024
AVENUE CAPITAL GROUP/EXECUTIVE

DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE

09/21/2005
25000.00
25020480734

06/30/2007
25000.00
27020281866

GELLERT, EDWARD
HARRISON, NY 10528
AVENUE CAPITAL GROUP/SENIOR PORTF

CLINTON, HILLARY RODHAM
VIA HILLARY CLINTON FOR PRESIDENT

04/13/2007
1000.00
27990275533

GREENBARG, TODD
NEW YORK, NY 10023
AVENUE CAPITAL GROUP/MANAGING DIR

CLINTON, HILLARY RODHAM
VIA HILLARY CLINTON FOR PRESIDENT

04/10/2007
500.00
27990275743

GROSSMAN, BRUCE
ARMONK, NY 10504
AVENUE CAPITAL GROUP

CLINTON, HILLARY RODHAM
VIA HILLARY CLINTON FOR PRESIDENT

03/14/2007
2300.00
27930581874

03/14/2007
2300.00
27930581873

LAM, GIGI
NEW YORK, NY 10280
AVENUE CAPITAL GROUP/VP FINANCE &

CLINTON, HILLARY RODHAM
VIA HILLARY CLINTON FOR PRESIDENT

04/09/2007
300.00
27990276761

LASRY, MARC
NEW YORK, NY 10021
AVENUE CAPITAL GROUP/FOUNDER/MANA

HILL PAC

01/11/2007
5000.00
27990432620

LASRY, MARC
NEW YORK, NY 10021
AVENUE CAPITAL GROUP/MANAGING DIR

DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE

06/27/2007
28500.00
27020281764

LASRY, MARC
NEW YORK, NY 10022
AVENUE CAPITAL GROUP

DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE

08/31/2005
10000.00
25020370520

LEVINE, SHERI
NEW YORK, NY 10023
AVENUE CAPITAL GROUP/FINANCIAL AN

CLINTON, HILLARY RODHAM
VIA HILLARY CLINTON FOR PRESIDENT

04/12/2007
500.00
27990276923

MARONEY, PETER JR
NEW YORK, NY 10022
AVENUE CAPITAL GROUP/ASSOCIATE

DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE

05/23/2006
1000.00
26020363194

RAYMOND, JESSICA M
NEW YORK, NY 10022
AVENUE CAPITAL GROUP/INVESTMENT A

CLINTON, HILLARY RODHAM
VIA FRIENDS OF HILLARY

11/29/2005
1000.00
26020091959

WIJERATHNA, NISH
STATEN ISLAND, NY 10301
AVENUE CAPITAL GROUP/ENGINNER

CLINTON, HILLARY RODHAM
VIA HILLARY CLINTON FOR PRESIDENT

04/09/2007
250.00
27990280466

WOLFMAN, ALEXANDER D
NEW YORK, NY 10038
AVENUE CAPITAL GROUP/DIRECTOR BUS

CLINTON, HILLARY RODHAM
VIA HILLARY CLINTON FOR PRESIDENT

03/02/2007
2300.00
27930585183

03/02/2007
2300.00
27930585182

WOLFMAN, ALEXANDER D
NEW YORK, NY 10038
AVENUE CAPITAL GROUP/DIRECTOR, BU

CLINTON, HILLARY RODHAM
VIA FRIENDS OF HILLARY

11/29/2005
1000.00
26020092643

All told the Avenue Capital partners contributed at least $246,500 to Democrats in just the last few years. So it is only fitting that they should be remunerated by having the Clintons try to tank the economy.

Still, shouldn’t Chelsea’s yearly six figure gift salary from Avenue Capital be listed as a campaign contribution as well?

This article was posted by Steve on Friday, February 15th, 2008. Comments are currently closed.

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