Photo: Lisa Du, Business Insider
Those participating in or watching the Occupy Wall Street protests yesterday may have caught sight of Daniel Barach and his white and red sign that read “STOP Tax Breaks For Hedge Fund Managers.”Like many others at Occupy Wall Street, Barach was a protester with a cause. But his backstory may turn a few heads: Barach used to be a hedge fund manager and has a MBA from Harvard Business School, Greenwich Time reported.
(You can see pictures of Barach and his sign at the Greenwich Time website.)
According to Barach’s Amazon.com profile, he used to own a fund called MLT Capital, and had pretty impressive returns until it closed in 2009. His fund seemed minuscule at best though, as he told the Business Courier in Cincinnati in 2003 that he hoped to raise $33 million in a new round of fundraising.
Barach told the Greenwich Time that he didn’t want to make hedge funders out to be the bad guy, but he did want them to pay their fair share of taxes.
In particular, he was referring to the carried interest tax loophole that has been a contentious issue throughout deficit reduction debates earlier this year. The carried interest tax allows hedge fund managers to pay 15% tax on the commission they make, marking it a long-term capital gain, compared to the 35% income tax rate. Hedge fund managers usually charge 2% of assets management and 20% of profits (the commission) as a fee.
Yesterday wasn’t the first time Barach had taken his cause public. On Wednesday, Barach walked up and down Greenwich Avenue in Greenwich, Connecticut with his sign because of the town’s distinction for being home to many hedge funds.
Barach may see his cause come to fruition soon—Bloomberg TV reported this afternoon that the Supercommittee is considering raising the carried interest tax to 35%, the same as income tax.
In the meantime, we look forward to seeing Barach in future Occupy Wall Street gatherings.