Ex-hedge fund CEO defeats Senate Democrat in Pennsylvania

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Republican David McCormick defeated Democratic Senator Bob Casey in Pennsylvania, according to the Associated Press, marking an upset that saw a former CEO of a hedge fund giant trounce a scion of a political dynasty in a year defined by appeals to the working class.

McCormick’s victory effectively gives Wall Street a Senate seat ahead of major battles in Congress next year over expiring Trump-era tax cuts and extending the federal debt limit. The win, which is being contested by Casey’s team, also underscores how GOP’s electoral fortunes are surging in this closely divided swing state.

“This race is within half a point and cannot be called while the votes of thousands of Pennsylvanians are still being counted,” Casey’s campaign said in a statement on Thursday. The Pennsylvania Secretary of State separately said there are at least 100,000 ballots that must be “adjudicated,” urging patience especially in contests where margins are very close.

The former head of Bridgewater Associates, 59, rode a wave of enthusiasm for Donald Trump and a tide of money from out-of-state billionaires across rural counties and exurbs of battleground Pennsylvania, playing up his childhood roots while fending off Democratic charges of carpetbagging. Those years living outside the state included combat service in the first Gulf War, roles in the George W. Bush administration, and more than a decade as CEO of the Connecticut-based hedge fund.

The GOP’s win in Pennsylvania adds to the party’s new Senate majority, following the defeats of incumbent Democrats Sherrod Brown in Ohio and Jon Tester in Montana, as well as Republican Jim Justice’s win in the open Senate seat in West Virginia.

Read More: Republicans Win Control of US Senate Ahead of Critical Tax Fight

Thanks to its critical status in the Electoral College, both presidential campaigns poured spending in Pennsylvania, flooding the state with direct mail and ads, criss-crossing with candidates and surrogates, and fielding small armies of door-knockers to try to bring out as many of its nine million registered voters as possible.

Big Donors

Casey held a persistent lead in public polls as the senator and his allies painted McCormick as one who lacks meaningful Pennsylvania connections, having bought a home in Pittsburgh only in 2021, just before he made his first, unsuccessful Senate run in 2022.

Surrogates for Casey, including Senator Elizabeth Warren of Massachusetts, highlighted McCormick’s support from conservative billionaires, suggesting he had little in common with the state’s working-class voters. Citadel founder Ken Griffin gave at least $15 million to Keystone Renewal, a super political action committee affiliated with McCormick.

Other donors to the super-PAC include Interactive Brokers Chairman Thomas Peterffy, Elliott Management Corp. founder Paul Singer, Uline Inc. leaders Elizabeth and Richard Uihlein, Antonio Gracias, founder of Valor Equity Management, Blackstone Inc. Chairman Stephen Schwarzman and Wynn Resorts Ltd. Founder Stephen Wynn.

McCormick contributed at least $4 million of his own money to the campaign.

In a flurry of TV and online ads, McCormick’s camp portrayed Casey as out of touch, hammering him in particular for his support of the Biden administration’s economic policies, and warning he would be an asset to Vice President Kamala Harris, whom they painted as an out-of-control leftist.

The ad siege finally managed to undo what had been Casey’s solid edge: his family name. Prior to his Senate career, Casey served in statewide offices, including treasurer, since 1997. His father, Bob Casey Sr., was a two-term Pennsylvania governor, and political veterans of both parties considered his name recognition an overwhelming asset in close elections.

(Updates with Casey and Pennsylvania state’s comments in third paragraph.)

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