Yesterday, the battle for the Democratic Party US presidential nomination resumed in Pennsylvania, and with it came a report on how many of the wealthiest hedge fund managers have been put
Yesterday, the battle for the Democratic Party US presidential nomination resumed in Pennsylvania, and with it came a report on how many of the wealthiest hedge fund managers have been putting money on senators Barack Obama and Hillary Clinton.
According to the Center for Responsive Politics, which tracks campaign contributions, Obama has received money from many of best-paid hedge fund managers, including Blue Ridge Capital founder John Griffin, Stephen Mandel of Lone Pine Capital and George Soros. Clinton, meanwhile, got donations from Renaissance Technologies’ James Simons, while SAC Capital’s Steven Cohen has donated to both candidates.
Looked at from a broad perspective, this move is all about investment opportunities. As productive and open-minded hedge fund managers, their job is to look at long-term, lucrative and opportunistic ways to invest – and to seek alpha. By showing their support for one or other candidate, they may unlock a door leading to a network that offers more ways to make money.
It was also noted in the New York Times’ DealBook column that much of the money was going to Obama. Why is he such a popular choice, DealBook editor Andrew Ross Sorkin wondered?
‘In a word, access,’ Sorkin wrote. ‘Unlike McCain and Clinton, Obama is relatively new to national politics and is therefore open to bringing new people – and new money – into the tent. For money types who want a table, or at least to look involved and get an invitation to the right parties, Obama is the candidate.’
Indeed. Whether it be Barack or Hillary, it’s all about investment opportunities.
