Unlike other sectors of the financial industry, hedge fund managers traditionally have contributed to the political campaign of someone they liked rather than to the strategic business choice. That’s changing, however, as more hedge funds are contributing cash to candidates that they think can influence HF rulemaking, according to Reuters. “It seems now the giving is becoming more business motivated,” President John Gaine of the Managed Funds Association told Reuters. Gaine pointed to his own group as an example; five years ago the MFA’s political action committee donated $7,000 to various candidates; this year the figure is already up to $122,500. The recent failed attempt by the Securities and Exchange Commission to regulate the industry is seen as one motivating factor to put personal preferences behind. In general hedge funds have been giving more to Democratic candidates, while other financial industry sectors still favor Republicans, but its predilection toward the donkey party may have something to do with the fact that many hedge funds are based in New York and Connecticut, two major bastions of blue. Reuters notes that benefiting the most from the HFs generosity have been Sen. Hillary Clinton (D-N.Y.) among the Dems, and Sen. John McCain (R-Ariz.) for the Republicans. Citing campaign records, Reuters reports that in this midterm-election season, the 20 top HF managers in the U.S. have nearly tripled their campaign giving to $3.1 million, but the bulk of that has come from famed Bush basher George Soros, who has plunked down $2.3 million, compared with $122,500 two years ago.
