Private Equity, Hedge Funds Get Unlikely Foe in GOP Think Tank
- New group led by ex-Romney adviser blasts industries in report
- American Compass questions whether firms benefit economy
Pedestrians are reflected on glass in front of Blackstone Group LP headquarters in New York on April 14, 2017.
Photographer: Victor J. Blue/BloombergA new conservative think-tank in Washington is launching its first campaign Wednesday with what could be a long-shot goal -- persuading pro-business Republicans that they should cast a more skeptical eye on Wall Street’s private equity firms and hedge funds.
American Compass, the brainchild of former Mitt Romney campaign staffer Oren Cass, wants to re-direct Republican policies to support businesses that make things and contribute to the real economy. The finance firms, the group worries, are engaging in “Coin-Flip Capitalism,” where their complicated, high-fee investment strategies gobble up money and business talent while generally performing worse than basic market indexes. That enriches fund managers, but does little to benefit society, American Compass says.