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Hedge Funds Battle With Obama
Pinnacle Digest writes: In his recent article, Clif Droke explains Hedge Funds’ new beef with Obama. Droke explains that being in an election year, as well as the tail end of a 4 year market cycle (which he believes is the start of a bear market), both Obama and Hedge Fund managers are taking a stand directly against each other. The political clout on Wall Street, and particularly from Hedge Fund managers, has grown tremendously since Obama took office.
Droke explains why a once favored president, by the Wall Street crowd, is now in their proverbial doghouse. “According to the article, Obama has raised the ire of the hedge fund industry by his proposal to raise the top marginal tax rate and increase the 15% tax on capital gains.”
According to Alec MacGillis, the author of a recent article published in The New Republic about Obama’s strained relationship with Hedge Funds, the beef started when the ‘hedge fund loophole’ was attacked by Obama. Obama’s new tax initiative directly effects the treatment of carried interest for hedge funds.
As Clif Drok goes on to explain, hedge funds are fighting back with significantly less donations to the Obama Campaign, if any at all. On top of that, the hedge fund industry is now getting involved with media investments to help influence the general public’s perception of Obama. Droke states “Consider S. Donald Sussman, the hedge fund manager who recently bought a stake in Maine’s Portland Press Herald.”
Click here to read Droke’s entire article.