Why Are These Hedge Fund Kingpins Dumping Millions Into the Midterms?
Mother Jones
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Hedge fund pioneer James Simons during a 2007 interview Mark Lennihan/AP
As Democrats and Republicans battle for control of the Senate, hedge funds are dumping millions of dollars into congressional campaigns. Most of these companies are lining up behind one party or the other. But the second-biggest spender, Long Island-based Renaissance Technologies, is playing both sides of the aisle. As of early September, the firm’s CEO, Robert Mercer, had given $3.1 million to Republican candidates and super-PACs. Its founder and chairman, James Simons—a brilliant former National Security Agency code breaker—had donated $3.2 million to their Democratic counterparts.
Neither man has spoken publicly about his motives, but the donations coincide with at least two federal investigations into Renaissance’s business dealings. In July, Renaissance executives were hauled before a Senate subcommittee and grilled about the company’s use of complex financial instruments to dodge billions of dollars in taxes and skirt federal leverage limits, which protect the financial markets from swings and crashes. As Sen. Carl Levin (D-Mich.) put it during the hearing, “excessive leverage” can “bring down not just a reckless borrower, but the financial institution that lent it money, and that failure can ripple through the entire financial system.”
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Why Are These Hedge Fund Kingpins Dumping Millions Into the Midterms?
