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Thursday, February 25, 2010

GOP Ohio Governor Candidate John Kasich: Records Show He Bought Into A Goldman Sachs Internet Fund Before It Was Launched

CINCINNATI (TDB) -- John Kasich was chairman of the U.S. House Budget Committee in July 1999 at the height of the dotcom boom. His federal financial disclosure statement (a portion excerpted above) shows he acquired a stake in the Goldman Sachs Internet fund on July 1, 1999. But Goldman Sachs didn't launch its Internet mutual fund until October 1, 1999. Kasich's financial disclosure statement indicates he got a three month head start. The record suggests that Kasich -- who didn't seek reelection in 2000 -- was closely following developments on Wall Street. Did he have access to inside information? Goldman Sachs said it created the Internet fund to offer an opportunity to invest in "what may be the most compelling technological change in our lifetime." It was the go-go era before the dotcom crash. After leaving the House, Kasich went to work for Lehman Bros. Inc., a Wall Street investment bank that collapsed in 2008.

Copies of four years worth of Kasich's House financial disclosure reports are available here (pdf) at the Center for Responsive Politics. [Ed. Note: The financial disclosure statement about Goldman Sachs is for calendar year 1999. Kasich signed and dated it May 12, 2000. He certified the information was accurate: "I certify that the statements I have made on this form and all attached schedules are true, complete and correct to the best of my knowledge and belief." The word certify is printed in capital letters.] has data about the Goldman Sachs Internet fund, which trades under the symbol GITAX. And Money Magazine's online edition noted the fund's Oct. 1, 1999 debut with a headline that day saying, Goldman Cooks Up A Net Fund. Just in case there are any doubts about the October 1, 1999 launch date of the Goldman Sachs fund, the Daily Bellwether has retrieved a decade old Goldman Sachs press release that announces its opening to investors. The full-text is reprinted below:

"PR Newswire
October 1, 1999, Friday - 13:35 Eastern Time
Goldman Sachs Launches the Goldman Sachs Internet Tollkeeper Fund(SM); A Different Approach to Internet InvestingSECTION: Financial NewsLENGTH: 760 wordsDATELINE: NEW YORK, Oct. 1Goldman Sachs Asset Management today launched the Goldman Sachs Internet Tollkeeper Fund, a specialty equity mutual fund investing in growth companies poised to benefit from the expansion of the Internet. What is an Internet Tollkeeper? -- Internet Tollkeepers include established telecommunications, media, technology and Internet companies; -- These businesses, like a toll collector for a highway or a bridge, have the ability to grow revenue by increasing traffic (customers or sales) and by raising tolls (prices); -- These are companies with strong market share, brand recognition, recurring revenue streams and pricing power. What is the investment focus of the Goldman Sachs Internet TollkeeperFund? -- Primarily, companies that provide access, content (movies, music and videos), services and infrastructure (servers, routers, networks) to Internet providers and users; -- Secondarily, companies whose rapid adoption of the Internet has improved their business model, as well as Internet-based companies capable of generating long-term sustainable profitability, -- This approach contrasts that of "pure play" Internet funds investing in new companies. Who manages the Goldman Sachs Internet Tollkeeper Fund? -- The Goldman Sachs growth equity team, managers of the Goldman Sachs Capital Growth, Strategic Growth and Growth Opportunities Funds; -- A team with an 18 year institutional track record and over 150 years' combined investment experience. "The evolution of the Internet has transformed the economic landscape. Theopportunities that have been created are significant -- so, too, are therisks, particularly for investors," said Douglas Grip, President of GoldmanSachs Funds Group. "The Goldman Sachs Tollkeeper Fund offers a potentiallymore conservative approach to investing in what may be the most compellingtechnological change of our lifetime." Goldman Sachs Asset Management was formed in 1988, providing individualinvestors the opportunity to tap the resources of a premier global financialservices firm and put this expertise to work for them in their individualportfolios. As of June 30, 1999, Goldman Sachs Asset Management had $191.1billion in assets under management. Investors have access to more than 30 Goldman Sachs Funds, managedaccording to institutional investment processes that deliver region-,capitalization-, and style-specific equity portfolios; and benchmark-driven,research-intensive fixed income funds. These investment processes combine thebest of what Goldman Sachs has to offer: active management, global resources,significant research capabilities, risk management expertise, proprietaryquantitative models, and a team approach. Goldman Sachs (NYSE: GS) is a leading global investment banking andsecurities firm, providing a full range of investing, advisory and financingservices worldwide to a substantial and diversified client base, whichincludes corporations, financial institutions, governments and high net worthindividuals. Founded in 1869, it is one of the oldest and largest investmentbanking firms. Goldman Sachs is headquartered in New York and maintainsoffices in London, Frankfurt, Tokyo, Hong Kong and other major financialcenters around the world. Some risk factors that can negatively affect pure-play internet stocks canalso negatively affect Internet Tollkeeper stocks. The Fund is subject togreater risk of loss as a result of adverse economic, business or otherdevelopments than if its investments were diversified across differentindustry sectors. Securities of issuers held by the fund may lack sufficientmarket liquidity to enable the fund to sell the securities at an advantageoustime or without a substantial drop in price. For more complete information about the Goldman Sachs Internet TollkeeperFund, call 800-526-7384 and request a prospectus. Read the prospectuscarefully before investing. Goldman, Sachs & Co. is the distributor of the Goldman Sachs Funds. The Goldman Sachs Internet Tollkeeper Fund(SM) is a service mark ofGoldman, Sachs & Co. SOURCE Goldman, Sachs & Co. CONTACT: Kathleen Baum of Goldman, Sachs & Co., 212-902-5400COUNTRY: UNITED STATES (92%); 92%);STATE: NEW YORK, USA (92%); 92%);CITY: LONDON, ENGLAND (65%); 65%);COMPANY: Goldman, Sachs & Co. GOLDMAN SACHS GROUP INC (98%); GOLDMAN SACHS GROUP INC (98%); GOLDMAN SACHS FUNDS GROUP (64%); P (64%); ORGANIZATION: Goldman, Sachs & Co. GOLDMAN SACHS FUNDS GROUP (64%); TICKER: GS (NYSE) (98%); GS NDSEG##GS"


  1. There is a group informing and warning Ohioan Voters about John Kasich who clearly does not practice what he preaches as described (with lots of evidence) on the Internet web site

    We believe this raises very real concerns about John Kasich being fit to be Governor of Ohio.

  2. John Kasich also bought into dangerous hypocrisy.

    Ohio voters need to know the truth about John Kasich’s views on education, which he shows extremely poor judgment about and remains silent about as revealed on the Internet web site

    We no longer support John Kasich and neither will the vast majority of Ohioans after they learn the truth about the kind of school that John Kasich DOES support, pays money to, and actually sends his very own daughters to.

    The truth is that John Kasich clearly does NOT have the courage, integrity, leadership qualities, or the common sense needed to be a suitable Governor for Ohio.
    Refer to the irrefutable and overwhelming evidence at and