Bloomberg Law: “During [McCormick’s] Years as Bridgewater’s Co-CEO or CEO Its Hedge Funds Held Stock in at Least 20 Chinese Firms That Were Subsequently Sanctioned by Presidents Donald Trump or Joe Biden”
Bloomberg Law: “The Pension Funds With Money Invested in Chinese Firms Include Those for Pennsylvania Teachers”
PENNSYLVANIA — A new report from Bloomberg has David McCormick’s disastrous record of selling out to U.S. adversaries under new scrutiny. The report details how David McCormick oversaw the investment of Pennsylvania workers’ pension funds in Chinese military companies.
This follows reporting that McCormick made millions from investments in China as CEO of Bridgewater after lobbying aggressively for pro-China policies as a Treasury Department official.
ICYMI: Bloomberg Law: GOP’s McCormick Led Bridgewater During China Military Investment
- US Senate candidate David McCormick led Bridgewater Associates as the hedge fund steered millions of dollars of investments into Chinese companies that produce fighter jets, bombers, planes equipped to jam enemy radars, and the country’s first domestically built aircraft carrier, according to documents analyzed by Bloomberg Government.
- McCormick — the Republican challenger in a critical contest in Pennsylvania— has long faced attacks over Bridgewater’s holdings to China. But previously unreported disclosures show new details of investments tied to its military and could undercut his attempts to cast himself as a China hawk in his campaign against Sen. Bob Casey (D-Pa.).
- …During his years as Bridgewater’s co-CEO or CEO its hedge funds held stock in at least 20 Chinese firms that were subsequently sanctioned by Presidents Donald Trump or Joe Biden for being part of the country’s military-industrial complex or surveillance efforts. The sanctions barred Americans from buying or selling publicly traded securities in the targeted companies.
- The disclosures show McCormick’s challenge in shifting from a world of satisfying private investors to one of winning over voters.
- Similar investments by Bridgewater hedge funds grew substantially during McCormick’s time as chief executive, from 2017 through early 2022. Investments in companies that later faced sanctions doubled by 2019, rising above $200 million, according to the disclosures. The sanctions were imposed by Trump the next year, and Biden in 2021.
- Bridgewater funds also held millions of dollars more in subsidiaries whose state-owned parent companies are among China’s leading producers of military aircraft, naval warships, missiles and nuclear power. Several have been listed by China’s government as among the most critical to the country’s strategic and economic interests, and were also hit with US sanctions after being added to the Chinese Military Industrial Complex List.
- The firm’s ties to China have become a glaring vulnerability — and have drawn new scrutiny as he’s become the presumptive nominee in one of a handful of races expected to decide control of the Senate.
- Bridgewater has long had an aggressive posture toward China, fueled by its founder, Ray Dalio. McCormick’s time as CEO came as that interest turned into even bigger action.
- Bridgewater’s holdings in China or Hong Kong stocks rose from at least $1.6 billion in 2017, when McCormick became co-CEO, to more than $2 billion in 2019, among the funds included in the Labor Department filings.
- In Bridgewater’s case, the pension funds with money invested in Chinese firms include those for Pennsylvania teachers, and employees at Target, UPS, and Campbell Soup.
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