American Crossroads president says it operates like a hedge fund
The Los Angeles Times explores the prospects for campaign finance reform after Sen. Russ Feingold (D-Wisc.) lost his re-election in November and now that more Republicans are in Congress. (At Monday’s Republican National Committee chair debate, when asked what the biggest mistakes of Republicans over the past ten years were, former Bush administration official Maria Cino said the McCain-Feingold Act, to huge applause.)
Steven Law, president of American Crossroads, is quoted by the LA Times as saying:
“We operate like a hedge fund,” said Steven Law, a former aide to Senate Minority Leader Mitch McConnell (R-Ky.) and president of American Crossroads, a nonprofit group that funds political ads. “We look for opportunities where we can invest and make a difference.”
Ironically, a November NBC News report suggested that donors to American Crossroads Grassroots Policy Strategies, a 501(c)(4) “social welfare” group that does not disclose its donors under tax law, were hedge fund managers:
A substantial portion of Crossroads GPS’ money came from a small circle of extremely wealthy Wall Street hedge fund and private equity moguls, according to GOP fundraising sources who spoke with NBC News on condition of anonymity. These donors have been bitterly opposed to a proposal by congressional Democrats — and endorsed by the Obama administration — to increase the tax rates on compensation that hedge funds pay their partners, the sources said
Crossroads GPS was very successful this past election cycle, winning in 15 of the 20 races it made independent expenditures in.