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The Hank Paulson Hedge Fund?

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Daniel Gross points out on Slate today that Treasury nominee Hank Paulson might have a problem divesting himself of his Goldman shares. Or, rather, he might not have doing anything with all the money he'd make from the sale. There's too much of it!

Once he sells, Paulson—or whoever will manage his blind trust—will have a new problem. In order to qualify for the certificate of divestiture, the cash must be invested in a diversified fund, such as a stock mutual fund. But Paulson's portfolio is so large that it doesn't make sense to put it into a mutual fund, or even into a whole bunch of funds. A nest egg of this size should be broadly diversified—some real estate and a few hedge funds, a few private equity funds, commodities, stocks from all over the world, a private island or two. And of course, all of these have the potential to be affected by Paulson's actions while he is in office.

Gross's solution: let Paulson keep his Goldman shares.
One of DealBreaker's hedge fund friends has another solution: have Paulson's money be doled out to various investment vehicles via a lottery administered by a trustee. Of course, in order to avoid any conflicts of interests, we couldn't let Paulson know where his money ends up. It's a bit whacky but it could work.
Another alternative is to have one guy, or a couple of guys, put in charge of investing all those Paulson millions as trustees of a blind trust. This essentially would create a sort of private hedge fund of Paulson's money. This is another idea our hedge fund friend endorses--providing he gets to be the trustee.
The Goldman Rule [Slate]