Hedge fund chiefs, with cash, join political fray -- and tilt Democratic

[DeepModem Mom]

NYT: Hedge Fund Chiefs, With Cash, Join Political Fray
By LANDON THOMAS Jr.
Published: January 25, 2007

....Hedge fund money, which now exceeds $1 trillion, has emerged in the last several years as a potentially powerful force in politics, as underscored by the significant role it is playing in the presidential aspirations of (Hillary) Clinton and (Rudy) Giuliani. During the 2006 election cycle, executives who work at the 30 biggest hedge funds made $2.8 million in contributions to political candidates or party committees, almost double the amount in 2000.

Yet it is not just the money they donate directly that makes people in hedge funds attractive to campaigns. They also offer access to other potential donors in the financial world, which in recent election cycles has become one of the biggest sources of political contributions. That pipeline has made it easy for well-connected candidates like Mrs. Clinton, Mr. Giuliani and Senator John McCain to consider forgoing public funding. (Mrs. Clinton has done so; Mr. McCain is expected to opt out; and Mr. Giuliani has not yet addressed the topic.)

Money from Wall Street has long been a factor in Washington and has tended to flow, with a policy agenda, to the ascendant political party. Giving by people in hedge funds, on the other hand, tends to be more personal and ideological. Some of the most aggressive donors have been Democratic supporters like George Soros, David E. Shaw of D. E. Shaw and James H. Simons at Renaissance Technologies, as well as younger executives like Thomas F. Steyer at Farallon and Marc Lasry at Avenue Capital, all of whom gave generously during the 2006 election cycle.

While hedge fund money appears to be tilting toward Democrats of late, Republican donors like Julian H. Robertson Jr., the founder of Tiger Management, who has given more than $700,000 over the last three cycles, and Bruce Kovner at Caxton Associates have backed their party’s candidates and causes....

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The connections can take different shapes and forms. For John Edwards, the Democratic presidential candidate, the 14 months he spent as a paid senior adviser at Fortress Investment, a $29.7 billion hedge fund and private equity firm, helped him to bond with the fund’s liberal-leaning executives, several of whom have given money to Mr. Edwards....Avenue Capital, a $12 billion fund run by Mr. Lasry, a prominent financial supporter of the Clintons, hired their daughter, Chelsea, last year....

http://www.nytimes.com/2007/01/25/business/25hedge.html?hp&ex=1169787600&en=875e967ed68d9e4a&ei=5094&partner=homepage