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Special Report: Inside Chesapeake, CEO ran $200 million hedge fund

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No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-03-12 04:26 AM
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Special Report: Inside Chesapeake, CEO ran $200 million hedge fund
Special Report: Inside Chesapeake, CEO ran $200 million hedge fund

By Joshua Schneyer, Jeanine Prezioso and David Sheppard

NEW YORK | Wed May 2, 2012 6:46pm EDT

(Reuters) - As chairman and CEO of Chesapeake Energy Corp, Aubrey McClendon has been a powerhouse in the vast U.S. natural gas market, directing the company's multibillion dollar energy-trading operation and setting output targets for America's second-largest producer.

Behind the scenes, a Reuters investigation has found, McClendon also ran a lucrative business on the side: a $200 million hedge fund that traded in the same commodities Chesapeake produces.

On Tuesday, two weeks after Reuters reported that McClendon has taken up to $1.1 billion in loans against his stakes in Chesapeake oil and gas wells, the company stripped McClendon of the chairmanship and reiterated that it's reviewing details of the loans. A statement quoted McClendon, who will stay on as CEO, saying that the move will enable him to focus his "full time and attention on execution of the company's strategy."

But for at least four years, from 2004 to 2008, McClendon's attention extended well beyond his job at Chesapeake.

During that time, said a veteran trader who helped run McClendon's private hedge fund, the Chesapeake executive engaged in "near daily" communications and "exhaustive" calls to help direct the fund's trading.


The fund is the Heritage Management Company LLC. McClendon and Chesapeake co-founder Tom Ward started the fund.
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KoKo Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-03-12 09:27 PM
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1. What's amazing is that this huge story got little coverage after the "One Day Wonder"
Edited on Thu May-03-12 09:31 PM by KoKo
on the Financial Websites or Cable CNBC/Bloomberg.
Then, there's the Corzine "MF GLOBAL Story) ..which got
huge coverage for weeks...but, then has been little heard from except by Max Keiser on "RT NEWS" tonighth...(which I know most here don't watch)..BUT..

Corzine is a huge Obama Election Fund Raising Bundler...

So...I'm wondering is Aubrey McClendon, CEO of Chesapeake Energy...another Obama Big Donor Bundler?

They've shut it ALL DOWN...or is it just a coincidence?

Well...whatever...Wall Street seems to give to both. Romney or Obama...and it doesn't matter which one wins...or they wouldn't be giving to both. But, shouldn't "We, The People" know what is going on?

More Wall Street Scandals after we've bailed them out over an over and they brought "THERI GLOBLIZED ECONOMY" down to the knees begging (when they failed) for the people all over America and Europe to "PLEASE....PLEASE...BAIL US OUT...OR YOU WILL BE RUINED!" The "Nasty Gram" that caused all of us to suffer for these scammers and criminals.
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No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-04-12 12:37 AM
Response to Reply #1
2. Wall Street's giving to both is the best "hedge" fund ever. It can't lose.
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