Earlier this week, President Obama complained about how much hedge-fund managers make at a discussion on poverty at Georgetown University, and advocated for a higher tax on the fees they collect.
"The top 25 hedge fund managers made more than all the kindergarten teachers in the country," he said. "If we can't ask from society's lottery winners to just make that modest investment, then, really, this conversation is for show."
The tax rate Obama was talking about is called carried interest. It allows hedge funds and private-equity firms to pay only 20% tax on the fees they make from investing, rather than 39.6%.
"The president has a point of view that's been a very winning strategy for him," said Anthony Scaramucci, CEO of $13 billion investment firm SkyBridge Capital. "It's rocks, eggs and tomatoes."
Scaramucci thinks the President is trying to divide the country.
"When you're the president you're the president for everyone ... Having said that, it's won him two elections."
If Scaramucci is concerned (he didn't sound it, actually) he might be the only one. The rest of hedge-fund land is more concerned about Hamptons season.
- "Did anyone even notice [Obama's comments]" asked one hedge fund executive.
- "He's a lame duck," said another industry professional.
- "Overall finance" doesn't care, said another senior Wall Streeter.
See you all in East Hampton.