Wilbur Ross was a big Mitt Romney supporter and expresses some optimism that Barack Obama’s second term could mean that Obama is more focused on bi-partisanship over politics.
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Mangrove Partners Narrowly Avoids “Extinction-Level Event”
Nathaniel August's Mangrove Partners is having a rough 2020. According to a copy of the hedge fund's August update, a copy of which ValueWalk has been able to review, for the year to August 5, Mangrove Funds have returned -38%. Over the trailing 12-month period, the funds returned -44%. The S&P 500 produced a positive Read More
one of our squawk regulars was in boston with governor romney last night. wilbur ross joins us now. good morning to you, wilbur. good morning, everybody. i want to talk to you about the investment implications of this election. but before i do at, i want to talk about the relationship wall street has had with president obama, the private equity industry has had with president obama, and to the extent you believe there’s a possibility of trying to mend that fence. does that happen? can that happen at this point? well, i think it could very well happen. first term for a president is mostly about politics. i think second term logically should be about the history books. and i think given the fact that congress is re unchanged, the real question will be if president obama wishes to start reaching across the aisle and working on a consensus basis. i’m optimistic that he will be looking toward the history books. you’ve campaigned and supported people who have been quite aggressive in some of the things they’ve said, though, about the president. when it comes to issues like carried interest, do you have any hope, wish that’s going to be on the table or off the table, rather? oh, i think it would be hard, frankly, for carried interest not to be on the table. it’d be very surprising to me if we could have both. not a big increase in the upper tax bracket and carried interest survive in its present form. there have been a number of proposals gradually to phase it out and bring it up to other high rates over a several-year period. i wouldn’t be surprised if something like that happened. give us your investment outlook. what happens now? we have the fiscal cliff that’s waiting out there. but you’re the — we call you the vulture investor. what do you go by now? well, i think what we’re trying to figure out is what will be the initial moves that the president makes? will he reach across? will he start discussions with speaker boehner? because since things are not changing, leadership presumably in both houses of the congress will be the same. there’s no reason for the president and the congress not to be beginning to interact constructively, even during the so-called lame duck period. i think that’ll be the big test. wilbur ross in boston, thank you for joining us this morning.