HEDGIES USE CHUMP CHANGE TO RIDE THE CAMPAIGN BANDWAGON

If there's one thing most hedge fund managers know it's leverage. And this year many of the biggest hedge funds in the land are using that strategy to make major bets on the midterm elections, just as regulators are stepping up their scrutiny of the industry.

Yes, it's the year of the hedge fund in national politics - as millions of dollars flow into candidates' coffers. In fact, campaign donations by the top 25 hedge funds this year have now topped $4 million - exceeding contributions for the 2004 presidential election, and more than tripling the amount donated back in 2002.

Sure, it’s chump change in the world of top hedge funds. There, top managers can easily make hundreds of millions of dollars a year, or more. But it's plenty of dough on a congressional campaign's rubber-chicken circuit, where even a $1,000 donation can merit a candidate's individual attention.

And where are the smartest money managers in the money business placing their bets?
Surprisingly, there is little hedging when it comes to which party the hedge funds are betting on in 2006. According to Bloomberg, more than two-thirds of the donations coming from big hedge funds and private-equity firms this year have been earmarked for Democrats. The top draw? New York Senator Hillary Clinton.

Clinton? Go figure.

http://www.nypost.com/business/expect_flush_hedgies_to_ride_the_campaign_bandwagon_business_terry_keenan.htm