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Wall Street enemies circulate Bessent returns as Treasury race drags on

Updated Nov 18, 2024, 3:34pm EST
businesspolitics
Jonathan Drake/Reuters
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The Scoop

Cherrypicked returns from US Treasury Secretary candidate Scott Bessent’s investment firm were flying around Wall Street group chats Monday, a sign of the mudslinging that has accompanied the race for the highest-profile vacancy in Donald Trump’s cabinet.

A document being shared in WhatsApp threads and Bloomberg chats shows that Bessent’s firm, Key Square, lost money five of the past seven years during a generally profitable run for funds like his, which bet on macroeconomic trends. Semafor has confirmed the numbers, which aren’t public because Key Square is a private investment firm.

But they exclude big profits in 2016, Key Square’s first year, as well as 2017 and 2024, a person familiar with the matter said.

Bad investment performance would undercut one of Bessent’s key selling points in the race for Treasury — that he’s a gifted investor with a finger on the pulse of the global economy. Bessent’s money-spinning days date back to the early 1990s, when he was a driving force behind Soros Fund Management’s famous bet against the British pound. He’s also scored big twice on the Japanese yen.

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It’s the latest shot fired in an ugly personnel battle that has captivated Wall Street. The Treasury post is the most senior cabinet job still unfilled, and one that would be at the center of Trump’s economic priorities like tax cuts and tariffs.

Howard Lutnick, the billionaire CEO of brokerage Cantor Fitzgerald, has made a late charge against frontrunner Bessent, Semafor has reported, throwing the race into chaos and bringing Bessent’s defenders, including Sen. Lindsey Graham, into the lobbying effort. Apollo CEO Marc Rowan is also in the mix, Semafor reported earlier this month, as is Sen. Bill Hagerty.

A representative for Bessent declined to comment.


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