Edwards discusses working for hedge fund

updated 4:30 p.m. ET May 8, 2007

WASHINGTON - Democratic presidential candidate John Edwards said Tuesday that he worked for a hedge fund to learn more about financial markets and their relationship to poverty in the United States.

Edwards won't disclose how much he got paid as a consultant to Fortress Investment Group, but said he did keep the money.

"It was primarily to learn, but making money was a good thing, too," the 2004 vice presidential nominee said in an interview with The Associated Press.

He said the amount he was paid will be revealed when he releases his financial disclosure forms.

Hedge fund donors
Fortress Investment Group, founded in 1998, describes itself as "a leading global alternative asset manager" with approximately $35.1 billion in assets under management as of December 31, 2006. The company is headquartered in New York with affiliates around the world.

Fortress was the single biggest employer of Edwards donors during the first three months of the year. Donors who listed "Fortress" as their employer contributed $67,450 to Edwards' campaign and supporters who identified their employer as "Fortress Investment Group" gave $55,200 to the campaign, according to Federal Election Commission records.

Working for the rich and poor?
Edwards said it's legitimate to ask questions about whether there is a contradiction between campaigning against poverty while working for a hedge fund that is designed to make rich people richer. He said the job was a complement to his position as the head of a poverty center at the University of North Carolina.

"I didn't feel like I understand, and to be honest with you still learning right now, sort of the relationship between that world and the way money moves in this country through financial markets," Edwards said.

Edwards said he also spoke to some Wall Street investment firms such as Goldman Sachs besides exploring the position with Fortress. He said his role was to advise the firm about what he saw happening economically in the United States and during his travels overseas.

Message board What do you think of Edwards’ candidacy?

U.S. hedge funds, now numbering more than 9,000 with assets estimated to exceed $1 trillion, traditionally catered to the rich, as well as pension funds and university endowments, but are increasingly luring less wealthy investors.

The funds operate with minimal government supervision. The rise in fraud - more than 60 cases brought by the SEC since 2001 charging hedge fund managers with defrauding investors of more than $1 billion - has hurt Main Street investors.

Picking the president — the candidates Click a name below to visit that candidate’s MSNBC page • Joe Biden                 • Sam Brownback     • Hillary Clinton          • Chris Dodd • John Edwards         • Rudy Giuliani           • Mike Gravel              • Duncan Hunter • Mike Huckabee        • Dennis Kucinich     • John McCain           • Barack Obama • Ron Paul                    • Bill Richardson      • Mitt Romney            • Tom Tancredo • Fred Thompson To subscribe to a candidate page RSS feed, click here.

MORE FROM JOHN EDWARDS NEWS

John Edwards News Section Front

Edwards exits presidential race Edwards: ‘Dynamic could shift anytime’ Health care up to public, Edwards says Video: Commander-in-chief? I'll call him 'Dad' Newsweek: Fact-checking Edwards' TV spots Cate Edwards unharmed in car accident Newsweek: What's next for Edwards There's no need to fear, underdog is here Edwards: Iowa shows voters want change Shared mission for the Edwardses John Edwards News Section Front   Add John Edwards News headlines to your news reader: