In the years that Pennsylvania Senate candidate Dave McCormick led Bridgewater Associates, one of the world’s largest hedge funds, the firm bet millions of dollars against some of the state’s biggest companies, including The Hershey Company and US Steel. Shorting these companies can have negative effects on corporations as it depresses their stock prices and makes it difficult for them to gain new financing or expand. McCormick, a Republican candidate, is positioning himself as a job creator for Pennsylvanians, but his record as a hedge fund manager has raised concerns about his understanding of workers’ needs.
The Pennsylvania Senate race between McCormick and three-term Democratic Sen. Bob Casey is crucial for Republicans seeking to gain control of the Senate. Financial issues, including McCormick’s leadership at Bridgewater and his business background, have become central topics in the campaign. McCormick has spent $4 million of his own money on the race and faces scrutiny over his firm’s short positions on Pennsylvania companies. The campaign has seen a barrage of TV advertisements both criticizing and praising McCormick’s record.
McCormick’s spokesperson Elizabeth Gregory defended the firm’s investment decisions, stating that it was not fair to focus on individual shorts of Pennsylvania companies when Bridgewater simultaneously invested in companies from the state. While McCormick was the CEO of Bridgewater, he was not involved in the day-to-day investment decisions. However, McCormick himself took responsibility for the firm’s actions during his tenure. The analysis found that Bridgewater Equity Fund shorted at least $16 million worth of Pennsylvania company stocks each year under McCormick’s leadership.
Short selling plays a vital role in maintaining balance and efficiency in financial markets, but from a political perspective, it can be challenging to explain to voters who may not understand the motivations behind such investment strategies. McCormick’s shorts on Pennsylvania companies like US Steel have drawn criticism as he attempts to appeal to the workers affected by these decisions. Despite defending the shorts as a fraction of each company’s value, critics argue that McCormick’s business dealings could hurt his chances in the election.
McCormick’s past business dealings, including investments in companies tied to the Chinese military and creation of jobs while leading a software company in Pittsburgh, have also come under scrutiny. His lack of political experience, along with controversies surrounding his business background, have made his campaign a target for criticism. Similar to other wealthy businessmen running for Senate positions this year, McCormick’s business record is both an advantage and a liability in his political career. The scrutiny on his financial decisions highlights the challenges faced by candidates basing their campaigns on their business backgrounds.
