Investing With Al Gore and Friends
Regarding his investing style, Al Gore says "I put my money my where my mouth is". (http://abcnews.go.com/GMA/al-gore-green-investments-politics-climate-change/story?id=8979747) He is both a chairman and co-founder of "Generation Investment management", a London based investment management firm, and a partner of Kleiner Perkins Caulfield & Byers, a very prestigious venture capital firm. (http://www.msnbc.msn.com/id/21756222/) Where he finds the time for all his business goings on remains a mystery for me. But there is certainly no inherent problem with investing "green" or according to personal beliefs.
Where the problems arise is simultaneously being a spokesperson for one's own investments. How nice to have Paramount Pictures, now a subsidiary media juggernaut, Viacom, distribute "An Inconvenient Truth". No doubt that year was particularly good for Gore's very green investment firm. And how nice that Paramount also helped fund Gore's "Alliance for Climate Protection", which further promotes his investments. And, though there is nothing wrong in using one's celebrity to sell books, doesn't it cross a line when the content of those books dovetails so very nicely with personal investments, especially when one is a founding member of a very relevant investment firm, and a partner of a very relevant venture capitalist firm?!
Generation Investment Management also owns a 10% stake in the Chicago Climate Exchange (CCX), which owns half of European Climate Exchange, creating yet another conflict of interest for Gore, since he benefits directly from the trading of carbon credits. (http://en.wikipedia.org/wiki/Generation_Investment_Management). And the Chicago Climate Exchange has another very notable contributor besides Al Gore's Generation Investment Management (GIM), which has a 10% stake. Wouldn't you know it - Goldman Sachs also has a 10% stake. And in a remarkable twist of fate, Gore has teamed up with quite a host of personnel from Goldman Sachs in the founding of GIM, including David Blood, former CEO of Goldman Sachs Asset Management, Mark Ferguson, former co-head of GSAM pan-European research; and Peter Harris, who headed GSAM international operations. Not to mention that Gore's primary founding partner in GIM was Hank Paulson, former Goldman Sachs Chief Executive.(http://en.wikipedia.org/wiki/Chicago_Climate_Exchange - 3rd paragraph ... http://www.humanevents.com/article.php?id=22663 - under "Gore's Circle of Business" ... 7th paragraph)
There's one more interesting bit to this. CCX owes its existence, in large part, to two very generous grants from the Joyce Foundation; a $347,000 in 2000 and another $760,000 in 2001. (http://www.marketswiki.com/mwiki/Chicago_Climate_Exchange - under "History") Coincidentally, Barack Obama sat on the Joyce Foundation Board at that time. (http://en.wikipedia.org/wiki/Joyce_Foundation - under "Governance" ) For anyone keeping score, the CCX also owns half of the European Climate exchange.
What's amazing here is where these guys find the time for so many high profile occupations, and how many times their career paths cross or are in a similar orbit. Remember, too, that Gore somehow finds time to be a partner in Kleiner Perkins Caulfield & Byers, a very prestigious venture capital firm, whose "Pandemic Biodefense Fund" should do fairly well if all the hype over swine flu vaccination continues. (http://www.reuters.com/article/idUSTRE53N6YO20090424) So too should an old friend, Donald Rumsfeld, since he also has very large stakes in Tamiflu. (http://motherjones.com/mojo/2009/04/swine-flu-bringing-home-bacon).
Where do cronies find the time? I guess the secret meetings must help. But it's not just that they're busy. It seems that they are experts in profiting from catastrophe. This is all too reminiscent of an absolute classic in the conflict of interest category, The Carlyle Group. (http://www2.whidbey.net/zipmont/revamp/Carlyle.htm) Looks like the manifest destiny, science of fear, school of investing exists on both sides of the political tracks.