Hedge Funds in Politics

Filed in archive Hedgetalk on January 27, 2007

I just love the way that politics and money go round in circles, it's like a soap opera, who's related to or in bed with whom, and who is who's enemy, friend, lover, ex.......

Now that hedge fund assets exceed $1 trillion, U.S. politics seems to be all about which wannabe prez is supported by which hedge fund.

Just last September, hedge funds were seen by the government as an "emerging threat", to quote Deputy Attorney General Paul McNulty. "There's been some interest in the media recently on hedge funds, and that would be a good example of an emerging threat that we would want to talk about and ensure that we are handling." Looks like it might have been a good idea, but a little too late, as the hedge funds seem to be floating the boat of the opposition nowadays.

During the 2006 election cycle, executives at the 30 biggest hedge funds made $2.8 million in contributions to political candidates or party committees, almost double the amount in 2000. I'm guessing hedge funds will end up being more of an "emerging goose that laid the golden egg".... for the other side.