Republican presidential candidate Donald Trump seems to have a complicated relationship with hedge funds.
On CBS’ Face The Nation on Sunday, Trump slammed “hedge fund guys” as being able to get away with murder because of the US tax code.
“They’re paying nothing, and it’s ridiculous. I want to save the middle class….The hedge fund guys didn’t build this country. These are guys that shift paper around and they get lucky,” Trump said on CBS’ Face The Nation on Sunday.
The issue Trump is referring to is the carried interest rule. It allows alternative investment funds, like hedge funds and private equity firms, to be taxed at a capital gains rate instead of the income tax rate.
“They’re making a tremendous amount of money. They have to pay taxes. I want to lower the rates for the middle class. The middle class are the ones who are getting absolutely destroyed.”
Trump, who has a self-proclaimed net worth of $US10 billion, forgot to mention that he’s also made millions through his investments in hedge funds.
Hedge Fund Intelligence last week picked up on a report released last month by the Federal Election Commission which revealed that Trump had somewhere between $US25 to $US50 million in BlackRock’s Obsidian Fund, a fixed-income hedge fund.
He also has between $US2 and $US10 million invested in two Angelo Gordon funds. He has between $US3 and $US15 million invested in funds managed by John Paulson.
Those investment generate between $US1.5 million and $US10 million in income, according to the Federal Election Commission report.
Trump has also asked hedge fund billionaire Carl Icahn to be Treasury secretary, and said recently that Icahn had agreed to handle U.S. trade negotiations with China and Japan if Trump makes it to the White House.
Unlike many other candidates, though, Trump doesn’t necessarily need hedge fund managers’ donations. He’s pledged to self-fund his campaign and has even said that he would spend up to $US1 billion of his own money.
Business Insider has reached out to the Trump team and will update this post if we hear back.
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