Anti-Wall Street Group Endorses Wealthy Hedge Fund Manager Under Ethics Investigation

Bill Clark, Getty Images

Alex Pfeiffer White House Correspondent
Font Size:

A political committee with a strong anti-Wall Street stance has endorsed a congressman for Senate who operates a hedge fund that seeks to capitalize on turmoil.

Progressive Chance Campaign Committee endorsed Florida Rep. [crscore]Alan Grayson[/crscore] Tuesday.

“Every step of the way — from Wall Street reform to expanding Social Security to being a national leader for Medicare expansion — Alan Grayson has stood with progressives as one of our boldest and most reliable allies,” the group said in a statement. “He is the only candidate who favors strong Wall Street reform and rejects campaign cash from Goldman Sachs and other big banks.”

In early February, it was uncovered that while serving in Congress, Grayson has been running a hedge fund based in the Cayman Islands. The fund seeks to capitalize off “turmoil due to economic, political, or natural disasters.” (RELATED: Reid Says Alan Grayson Has ‘No Moral Compass,’ Tells Him To Drop Out Of Senate Race)

His hedge fund, Sibylline Fund, has promotional materials that include the quote “the time to buy is when there’s blood in the streets.”

The House Ethics Committee is currently investigating Grayson and is supposed to release the results of their inquiry before April 5. Grayson’s fund has more than $16 million in assets and has a two percent management fee. Lawmakers are prohibited by House rules from earning more than $27,495 from outside jobs.

The Florida congressman’s office has been confident he will be vindicated. A spokesman said last month, “There has never been any time when Representative Grayson’s investment activities have disrupted any of his work, whether official or campaign-related.”

Grayson is currently running for the open Senate seat left vacated by [crscore]Marco Rubio[/crscore]. He is facing competition in the primary from Rep. [crscore]Patrick Murphy[/crscore]. Biden visited Miami Monday to campaign with Murphy.