Obama Reaches Out To Wall Street, Hedge Funders

Jun 13 2011 | 12:30pm ET

Facing a reelection campaign next year in a difficult economic environment, President Barack Obama is turning to a group that feels he has spurned it, and that has in turn spurned him: Wall Street.

Many of the hedge fund managers and investment bankers who helped bankroll the president's successful 2008 campaign are either sitting out this round so far or, worse for Obama, have switched sides, like one-time major Democratic donor Daniel Loeb of Third Point. But just weeks before he formally announces his reelection campaign, Obama is reaching out to hedge funds, private equity firms and Wall Street.

In March, two dozen financiers, including Eton Park Capital Management's Eric Mindich, York Capital Management's James Dinan, Highbridge Capital Management's Glenn Dubin and Tudor Investment Group's Paul Tudor Jones, were at the White House, given more than an hour to air their grievances with the president over hedge fund regulation and other issues that have made them unhappy. Obama also personally called several people who were unable to attend the meeting, The New York Times reports.

Jim Messina, the former White House deputy chief of staff now leading Obama's reelection effort, was in New York last month to meet with Obama's donors, including Marc Lasry, the Avenue Capital Partners chief who is close to Secretary of State Hillary Rodham Clinton and former President Bill Clinton. Obama himself will be in New York later this month to dine with bankers, hedge funders and private equity investors at the restaurant Daniel.

Obama's team has also leaned on its loyal supporters, including Boston Provident Partners' Orin Kramer, Mindich and Centerbridge Partners' Mark Gallogly, to defend the president and push their colleagues to open their wallets. And it is focused on people at firms that traditionally give more to Republicans, including Cerberus Capital Management's Lenard Tessler and the Blackstone Group's Hamilton James.

"Fundraising is certainly different than last time around in '07," UBS Group Americas CEO Robert Wolf told the Times.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.