Trump’s Treasury Pick: A Hedge Fund Chief with a Diverse Portfolio
Scott Bessent, the founder of Key Square Capital Management and President-elect Donald Trump’s choice to lead the Treasury Department, has revealed a staggering personal fortune worth at least $521 million. The hedge fund chief’s assets, disclosed in a filing with the U.S. Office of Government Ethics, paint a picture of a savvy investor with a diverse range of interests.
A Global Real Estate Empire
Bessent’s portfolio includes a significant stake in residential real estate, with properties in the Bahamas and Cashiers, North Carolina, valued between $5 million and $25 million each. These assets generate rental income ranging from $50,001 to $100,000.
A Passion for Art and Antiques
In addition to his real estate holdings, Bessent has a notable collection of art and antiques, valued between $1 million and $5 million. This eclectic mix of assets underscores his appreciation for the finer things in life.
A Believer in Passive Investing
Despite his reputation as a shrewd Wall Street operator, Bessent appears to be a proponent of passive investing. He has invested more than $50 million each in the SPDR S&P 500 ETF, the Invesco S&P 500 Equal Weight ETF, and the Invesco QQQ, which tracks the Nasdaq 100. This strategy suggests a willingness to diversify and minimize risk.
Currency and Crypto Holdings
Bessent’s portfolio also includes significant positions in U.S. Treasury bills, as well as bets on the dollar versus the euro, China’s yuan, and Japan’s yen. Furthermore, he has invested $250,001 to $500,000 in the iShares Bitcoin Trust ETF, indicating an interest in the cryptocurrency market.
Avoiding Conflicts of Interest
To avoid potential conflicts of interest, Bessent has pledged to resign from Key Square and sell his stake in the partnership if confirmed as Treasury secretary. This move demonstrates his commitment to upholding the highest ethical standards in public office.
Income and Compensation
Bessent’s income is largely derived from Key Square, including a guaranteed payment of $1 million and “management fees/incentive allocations; dividends” of $2.8 million. This compensation package reflects his success as a hedge fund manager and entrepreneur.
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