Some of the biggest donors to political campaigns to emerge in recent years are hedge fund managers, with some throwing a cool $1 million here, a couple million there, at issues and candidates they—or, increasingly, their industry comrades—support.
Out of this growing pool of big hedge fund donors, Elliott Management's Paul Singer, Third Point's Dan Loeb, Pershing Square's Bill Ackman, and AQR's Cliff Asness, among others, have emerged as some of the biggest donors, with Singer rallying hedge funders to give to his Political Action Committees, Loeb tirelessly pressing for education reform measures, and Ackman backing Cory Booker in recent years.
It appears 2014 was no different, with a number of hedge fund titans cutting checks to PACs, ballot measure campaigns, and individuals running in the midterms, betting big that the outcomes of these races will fall in favor with their causes, be it a philanthropic, personal, or even investment cause.
And the bets mostly paid off. Here's a look at the causes and candidates that emerged victorious yesterday, thanks in part to hedge fund dollars.
Loeb and Cuomo
Loeb donated $41,000 to Andrew Cuomo's successful reelection campaign for New York Governor earlier this year. Perhaps the contribution served as a thank you for Cuomo's efforts to legalize same-sex marriage, an issue both Loeb and Singer have staunchly supported over the years.
Ackman and Booker
Pershing Square's Ackman has been a Booker fan since his days as the mayor of Newark, a city that Ackman spent massive amounts of money trying to revitalize. This year, Ackman stuck by his candidate, this time in Booker's run for reelection to the U.S. Senate. Ackman and numerous other Pershing Square employees donated the maximum $2,600 donation to Booker's campaign multiple times throughout the year, with Ackman giving $10,000 to Booker's PAC, according to filings. The bet paid off last night, with the Democrat Booker winning his race against Republican challenger Jeff Bell.
New York Attorney General Eric Schneiderman
Short-sellers, rejoice! Schneiderman was reelected as New York's Attorney General last night, but it likely wasn't without the help of a ton of big-name hedge funders, including Ackman, Jim Chanos, David Einhorn, John Paulson, and Jim Simons. That Schneiderman is the hedge fund industry's darling, some have speculated, may have something to do with the fact that he investigates these big investors' short targets, as in the case of Ackman and Herbalife.
New York 2014 and the NY Congressional races
This year, Singer's main focus was a PAC called New York 2014, focusing on the state's congressional races. New York 2014 primarily supported Republican candidates John Katko, Elise Stefanik, and Bruce Blakeman, with more than $1 million in total donations from hedge fund titans like Citadel's Kenneth Griffin, Renaissance Technologies' Robert Mercer, AQR's Asness, and Loeb, who gave $250,000 to the PAC, according to campaign contribution filings.
The group's efforts were mostly successful, with Katko and Stefanik emerging victorious in their races, while Blakeman lost his.
New Yorkers for a Balanced Albany
This PAC has been the largest source of financial support to the Republicans running for the New York State Senate, and has, at its core, the mission of enacting pro-charter school education reform in the state. Armed with $1 million donations from Loeb and former Tiger Management hedge fund boss and billionaire Julian Robertson, as well as $500,00 from Singer, New Yorkers for a Balanced Albany took aim at the state senate seats, looking to install Republican candidates this year.
The strategy worked, with Republicans taking control of the New York State Senate last night, and Singer and Loeb coasting to another victory of their own.