Hedge funds doling out the funds to the Dems

Democrats are the big winners this season in the quest for contributions from hedge funds.  More than two thirds of the monies collected in 2005-2006 have gone to the Dems.

Of the $7.4 million contributed by employees of the 100 largest hedge funds and 50 biggest buyout firms in 2005-06, Democrats received $5 million, Federal Election Commission records show. The biggest checks went to congressional campaign committees led by New York Senator Charles Schumer and Illinois Representative Rahm Emanuel, which took in $2.8 million.

Donors say they're giving more to Democrats because of their dismay over President George W. Bush's performance on issues such as the war in Iraq and because they see a real chance for Democrats to win control of Congress for the first time in 12 years. They say they view Schumer and Emanuel -- who are courting Wall Street donors -- as key to that goal.

``Rahm and Senator Schumer are pretty charismatic guys -- they've been extremely aggressive in making sure they target the right people and talk to the right people,'' says Marc Lasry, managing partner at New York-based Avenue Capital Group, among the biggest hedge funds. ``Iraq has made it easier for Rahm and Senator Schumer to raise money.''....

``Hedge-fund and buyout-fund giving is largely the personal giving of wealthy individuals who probably lean Democratic in their personal beliefs,'' says Kenneth Gross, a campaign-finance lawyer in Washington. PACs are ``more prone to back incumbents in support of legislative programs. The PAC ship won't begin to turn significantly unless the Democrats actually gain control.''

Mallory Factor, a New York merchant banker who raised at least $500,000 for Bush and the Republican Party in 2004, says the hedge-fund industry perceives the mood of the country as moving against incumbents, most of whom are Republicans.

``Hedge-fund guys happen to have a very good awareness of what is happening,'' Factor says. ``They understand trends.'' ...

Lasry, of Avenue Capital Group, and his wife have given $110,000 to Schumer and Emanuel's committees since January 2005, according to FEC figures. They gave $51,000 for the 2004 elections. Lasry has held fund-raisers for Emanuel and the DCCC at his townhouse on Manhattan's Upper East Side....

Tim Collins, founder and chief executive of the New York- based buyout firm Ripplewood Holdings LLC, and his wife have given at least $42,000 to Schumer and Emanuel's House and Senate party campaign committees, according to FEC figures.

``I grew up a Democrat, I've been a Democrat all my life and I don't mind paying higher taxes if it means taking care of people less fortunate than myself,'' says Collins, 49, whose firm is one of the 50 largest buyout firms....

While the overall trend in the industry favored the Democrats, Republicans benefited the most from donations given by employees of New York-based hedge fund Elliott Associates LP, which had the most generous political donors among the 150 firms. The fund's executives, led by founder Paul Singer, have made at least $503,050 in contributions since January 2005....

``I believe strongly that everyone should participate in the political process,'' Singer says. ``I continue to believe that the Republican Party is better on important issues like national security, energy policy, taxes, judges, litigation reform and the economy.'' ...

Hedge Funds, Buyout Firms Favor Democrats With Campaign Money - Bloomberg