Whitman's funds could pose conflicts | latimes.com

California politics may actually be even more entertaining without the Gubernator than now, believe it or not. 

First volleys: Billionaire GOP gubernatorial candidate Meg Whitman says she'll "run California like a business"; so appropriately, her first idea for fixing California's budget crisis is massive layoffs. 

I wonder if anyone will tell her that when you lay people off from a business, they go to work elsewhere, when you lay off citizens, they're still here, they just can't pay taxes or their bills. Perhaps Whitman's next step is to Shanghai those laid off and ship them to plants in China. That would be one way to "downsize" California. 

Meanwhile, a first peak at Whitman's finances is interesting: Cayman tax dodges for investing in Moldova, vulture funds investing in distressed properties while promising no public disclosure ... some details from the LA Times: 

"Reporting from Sacramento: Billionaire GOP gubernatorial candidate Meg Whitman has invested her vast wealth in firms that sought to profit from the country's credit crisis, in venture capital and hedge funds open only to the wealthy, and in oil, gas, healthcare and other concerns seeking to influence state policy.

The first public glimpse into the financial portfolio of the former EBay chief came Thursday, when she filed an economic-interest disclosure required of candidates. ...

"...  At least one of the funds in Whitman's portfolio, NCH Agribusiness Partners, lists its business address in the Cayman Islands, a well-known tax haven. NCH specializes in agriculture-related business opportunities in Ukraine, Russia, Bulgaria and Moldova....

"Among those investments are Goldman Sachs Distressed Opportunities Fund IV, in which Whitman has at least $1 million. The fund places capital in "companies experiencing financial or operational distress, as well as other special situations."

"She has more than $1 million in each of two funds with Goldman Sachs Mezzanine Partners, which provides money for leveraged buyouts, restructurings and other financial reorganizations in the Americas and Europe. One advantage of investing, according to the funds' website, is "confidentiality and ease of execution, with no public disclosure."

"Perry Partners, a New York hedge fund in which Whitman has between $100,000 and $1 million, informed investors in a letter reviewing last year's second quarter that there was potential money to be made in distressed auto loans for Chrysler Financial, GMAC and Ford Motor Credit.

"These credits were the most compelling corporate distressed opportunities we have seen so far this cycle," the letter said. "These positions were all profitable. . . despite the bankruptcy filings of both Chrysler Automotive and General Motors."

"The letter, posted on the website Market Folly, which tracks several dozen big hedge funds, additionally told investors that "as the commercial real estate and consumer sectors continue to deteriorate, we have been preparing ourselves to take advantage of what are likely to be very attractive distressed opportunities."...

"Campaign officials said Whitman's investments reflect business acumen." 

via www.latimes.com