Wednesday, 31 August 2016
Last updated 3 hours ago
Nov 1 2012 | 12:44pm ET
Despite their apparent preferences at the ballot box, more hedge fund managers think that a victory for Mitt Romney in the U.S. presidential elections on Tuesday would be worse for the markets than the re-election of President Barack Obama.
Much has been made of the hedge fund industry's turn right; Obama took in huge campaign contributions from hedge fund employees four years ago and enjoyed broad-based support within the industry. But his financial regulation reform made it hard to keep friends there, and most hedge fund managers have joined the majority of their Wall Street colleagues in backing Romney, a former private equity executive, and savaging Obama.
So it comes as something of a surprise that, according to an online poll by Hedge Funds Review magazine, hedge fund managers don't expect a new dawn under Romney. Some 29% of respondents think that Romney will be bad for global markets, against 25% who say he'll be good for them. By contrast, Obama is rated by 27% to be good for global markets and by only 12% to be bad for them.
In addition, 43% say that Obama's re-election will have no impact on markets, while only 24% say the same about Romney. And while 6% say that Romney will be good for U.S. markets only, against just 2% for Obama, the same number, 16%, predict that each man will be bad for U.S. markets.
Obama is currently a narrow favorite, according to most national polls. The campaigns resumed yesterday and today after a suspension due to Hurricane Sandy.