Dave McCormick, a Pennsylvania Senate candidate, led a hedge fund that shorted stocks of nearly 50 companies headquartered in Pennsylvania, including iconic companies like The Hershey Company and US Steel. Short positions are essentially bets that a company’s stock will drop, which can depress stock prices and hinder corporate growth. McCormick’s background in finance is now a central issue in his campaign, where he positions himself as a job creator for Pennsylvanians. The Senate race between McCormick and Democratic Sen. Bob Casey is crucial for Republican efforts to gain control of the Senate, with McCormick spending $4 million of his own money on the campaign.
During McCormick’s tenure at Bridgewater, the firm shorted Pennsylvania company stocks worth millions of dollars each year. The fund shorted stocks of companies like Hershey, Comcast, and Penn National Gaming. While Bridgewater did invest in stocks of some Pennsylvania companies, the short positions raised eyebrows in the political arena, as short selling can be difficult to explain to average voters who may not understand the nuances of financial investments. Despite this, financial experts argue that short selling is an important economic tool that can prevent stocks from becoming overvalued and make markets more efficient.
One of the politically sensitive companies that Bridgewater shorted under McCormick was US Steel, a major manufacturing firm in Pennsylvania. Bridgewater initially invested in US Steel, but by the end of McCormick’s tenure, the fund had sold off its stocks and shorted the company for millions of dollars. McCormick has criticized the proposed sale of US Steel to Nippon Steel, which could impact American security. The shorts taken by Bridgewater against Pennsylvania companies conflict with McCormick’s efforts to win the votes of workers in those companies, leading to criticism from unions like United Steelworkers.
McCormick’s past business dealings have generated negative headlines during his political career, including criticisms over Bridgewater’s investments in companies tied to the Chinese military. McCormick has faced scrutiny over his claims of creating jobs while leading a Pittsburgh-based software company, with local media questioning the validity of his statements. As one of several Republican Senate nominees without prior political experience, McCormick faces challenges in converting his business background into political success. Critics argue that candidates with business backgrounds may not consider the political implications of their past decisions, making it both an advantage and a liability in a political campaign.
