Romney, Bain Capital Founder And Hedge-Fund Favorite, Loses Presidential Bid

Nov 7 2012 | 10:37am ET

In a race that proved somewhat less close than pundits expected, Bain Capital founder Mitt Romney's seven-year bid for the presidency ended in defeat last night with the re-election of President Barack Obama.

Romney, the former governor of Massachusetts, fell short by just over 2.5 million votes, or 2.2%. The president carried all of the highly-watched "swing states" save one, North Carolina, which flipped into the Republican column, along with Indiana; Obama won both states in 2008.

Indeed, despite pessimism about the economy, Americans returned the status quo to Washington by healthy margins. In addition to Obama's re-election, Republicans comfortably held on to the House of Representatives, with a number of seats still undecided. And Democrats improbably increased their lead in the Senate, staging unexpected wins in Indiana, Missouri and North Dakota, and will likely hold on to their seat in Montana, where Sen. Jon Tester remains in the lead with 85% of the vote counted.

Romney conceded defeat just before 1 a.m., about an hour-and-a-half after the networks called Ohio—and with it, the election—for Obama. Obama's Ohio victory was rendered moot when swing states like Colorado, Iowa and Nevada went for him; the final electoral college tally will be a blowout, with the richest swing-state prizes, Florida, Ohio and Virginia, all in the president's column.

The result will no doubt be a bitter pill for Wall Street—and the hedge fund community—to swallow. Hedge funders, many of whom dug deep to secure Obama's election four years ago, switched sides this time around, embittered by Obama's embrace of the Dodd-Frank financial regulation reform law and what they saw as his unfair attacks on their wealth and Wall Street. Many members of the hedge fund elite held what they had hoped would be victory parties last night, including John Paulson, and several others were at Romney's concession speech in Boston, including Julian Robertson, Skybridge Capital's Anthony Scaramucci and possibly Elliott Associates' Elliott Singer, who was invited.

Down-ballot races aren't likely to have made those men any happier. Democrats easily won the open U.S. Senate seat in hedge fund haven Connecticut, with Rep. Chris Murphy outlasting the lavishly self-financed campaign of Republican Linda McMahon. To the north in Massachusetts, Harvard University law professor Elizabeth Warren ousted Republican Sen. Scott Brown; Warren is famed for championing strict consumer financial regulations. And Democrats also held on to Murphy's House seat in northwestern Connecticut in a close race; indeed, Republicans were swept out of the House in Romney's home region of New England: With the defeat of two Republican congressmen in New Hampshire, all of New England's 21-member delegation are Democrats.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.