Hedgefunds & Private Equities and their role in the election.

This election should be a very interesting one. Last year, there was a proposal by a Democratic lawmaker that the carried interest would be taxed at 35% the corporate tax rate rather than the current 15% at the capital gains rate. Hedgfunds and Private Equities have been under heavy scrutinty the past year and will be the center of many debates. In turn, the funds have been lobbying large amounts to their respective parties. Either way, when it comes to creation of a tax code, there will be winners and losers. With the current market condition, many funds are already having a their roughest year posting postive returns; now, imagine having the carry taxed at a significant higher rate. In addition, Joe Biden, a Democratic primary mentioned that there is a need for more "transparency" in the private equities and hedgefund industries. This is exactly what needs hedgefunds need in the time where they are posting their worst performance numbers. Many funds are already in the process of closing down their funds. This election should be an interesting one especially with the spotlight on the hedgefunds and private equities. Let's see how the market will react.