Hedge Funds Politics & Regulation

Fortress warns of Obama intent to curtail carried-interest tax loophole


Fortress Investment Group wants to let its shareholders know that the worst might be yet to come. In a footnote in the hedge fund and private equity firm’s latest quarterly filing with the Securities and Exchange Commission, Fortress said that the next administration may eliminate the tax advantage of having carried-interest income treated as capital gains.

“Senator Barack Obama, the President-Elect, has publicly stated that he supports similar changes to the tax code,” the firm dryly notes in the filing. That change would increase the beleaguered firm’s tax burden.

Of course, taxes may be the least of the