Hedge funds give big to 'Wall Street candidate'

Donor records reveal Romney campaign heavily backed by hedge fund managers.

By InvestSMART · 2 Feb 2012

By InvestSMART ·
2 Feb 2012

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Donor records reveal Romney campaign heavily backed by hedge fund managers.

NEWT Gingrich's portrayal of Mitt Romney as the candidate of Wall Street money was underscored by the latest political donor records, which revealed the top four contributors to a political action committee (PAC) allied to Romney were hedge fund managers.

All up, almost 60 corporations and wealthy individuals donated at least $US100,000 ($A94,000) each to the Romney PAC ''Restore Our Future'', which raised more than $US20 million in the second half of 2011.

A $US10 million donation from casino mogul Sheldon Adelson and his wife, Miriam, to ''Winning Our Future'', a committee backing Mr Gingrich, did not feature in the latest accounts because it was given in January.

About half of the $US2 million raised by the group in December came from associates of the Adelsons.

Mr Adelson, a staunch advocate for Israel, was rewarded in Mr Gingrich's speech in Florida with a renewed promise that, if elected, he would relocate the US embassy in Israel to Jerusalem, from Tel Aviv, a move long supported by Mr Adelson.

Of other key activists, ''American Crossroads'', the Republican group backed by former George W. Bush adviser Karl Rove, said it had raised $US51 million along with its non-profit arm last year. Most of its $US11 million in contributions over the past three months came from roughly a dozen donors.

Once, strict rules governed how much could be donated to PACs. Corporate and union money was banned from PACs, while direct donations to candidates were capped at $US2500.

However, a 2010 Supreme Court ruling paved the way for uncapped donations to PACs by affirming the right to free speech and political advocacy. SIMON MANN, AGENCIES

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Frequently Asked Questions about this Article…

What did donor records reveal about hedge fund managers and Romney PAC donations?

Donor records showed Newt Gingrich's claim that Mitt Romney was the 'candidate of Wall Street money' had merit: the top four contributors to the Romney-allied political action committee 'Restore Our Future' were hedge fund managers.

How much money did the 'Restore Our Future' PAC raise and who donated?

'Restore Our Future' raised more than US$20 million in the second half of 2011, with almost 60 corporations and wealthy individuals each donating at least US$100,000 to the PAC.

What large donations backed Newt Gingrich and how were they reported?

Casino mogul Sheldon Adelson and his wife Miriam made a US$10 million donation to 'Winning Our Future', a committee backing Newt Gingrich. That US$10 million did not appear in the latest accounts because it was given in January; about half of the US$2 million raised by the group in December came from Adelson associates.

Which outside group raised significant funds and who supports it?

'American Crossroads', the Republican group backed by former George W. Bush adviser Karl Rove, said it raised US$51 million along with its non-profit arm last year. About US$11 million of its recent contributions came over the past three months from roughly a dozen donors.

How did campaign finance rules change to allow large PAC donations?

Previously corporate and union money was banned from PACs and direct donations to candidates were capped at US$2,500. A 2010 Supreme Court ruling paved the way for uncapped donations to PACs by affirming the right to free speech and political advocacy.

Which candidates were the main beneficiaries of these big political donations?

The article highlights two beneficiaries: Mitt Romney’s allied PAC 'Restore Our Future' received major support from hedge fund managers and other wealthy donors, while Newt Gingrich benefited from large donations to 'Winning Our Future' and support from donors linked to Sheldon Adelson.

Did large donors influence policy promises mentioned in the article?

The article notes that Sheldon Adelson, a staunch advocate for Israel, was publicly rewarded in Gingrich’s speech with a renewed promise to move the US embassy in Israel to Jerusalem if elected — a policy position long supported by Adelson.

What does the article suggest about the role of wealthy individuals and corporations in political fundraising?

The article indicates wealthy individuals, hedge fund managers and corporations played a major role in political fundraising in 2011 — contributing large sums to PACs and outside groups, and substantially boosting the war chests of Republican-aligned committees.