Bradford is a senior manager at a hedge fund, specializing in political elections. He reseraches which candidate is likely to win, and why, then constructs a compatible investment strategy (e.g. in the year 2000, Bradford invested in both oil and renewable energy, reasoning that oil stocks/futures would go up if Bush won, and renewable energy stocks/futures would go up if Gore won).
Surprise is key to Bradford's success. If others knew he was going to move $500 million into the oil market, others would buy first, and advantage off of his research.
This year Bradford was monitoring elections, and saw some quality candidates with disorganized campaign managers. So he decided to get involved. Bradford decides to help Clancy, who is running for Mayor of Metrocity. Clancy has openly stated that he would support the development of a gold mine on the West side of town. This controversial project is projected to lower gold prices.
Bradford starts to donate to Clancy's campaign, and provides expert strategies for free.
Clancy's thought process: he not only does not need to report his associated with a hedge fund, but he cannot report this association because hedge fund's have the SEC-given right to keep their investment strategies confidential.
DISCUSS....
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