US presidential elections have often featured a Republican billionaire whose interests come to dominate the political conversation, says Vanity Fair. In 2008 it was all about the Koch brothers; in 2016, about Robert Mercer bankrolling the alt-right; 2024 is shaping up to be the year of Jeff Yass – “the most successful financier you’ve probably never heard of”.
The 68-year-old co-founder of Wall Street trading firm Susquehanna has emerged as “the single biggest political donor” for 2024, contributing more than $70 million as of early June. A registered Libertarian and former “Never Trumper”, Yass professes not to be supporting Donald Trump’s campaign. But since much of the cash has found its way into a super PAC (an organisation that pools contributions to donate to political campaigns) run by Club for Growth (an anti-tax political advocacy group which has declared its support for Trump) that’s “a moot point”, says Bloomberg Businessweek.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
How Jeff Yass became Trump's secret weapon
In 2012, Susquehanna invested a few million dollars in an obscure Chinese company called ByteDance with an interesting video app. That 15% stake in TikTok is now worth roughly $40 billion, according to the Financial Times, and could be worth up to $150 billion if ByteDance goes public and achieves a Facebook level of valuation. It was “one of the best plays of the decade”, says Vanity Fair. “But Yass’s golden run is in danger.” In April, President Biden signed a law forcing ByteDance to sell TikTok to a US company or face a complete ban on national security grounds.
“Gambling is all about understanding your opponent’s weakness.” Trump’s was lack of cash. So those close to Yass were unsurprised when the former president – once a die-hard TikTok opponent – flip-flopped in the spring. If Trump is re-elected, TikTok will get a stay of execution.
The son of an accountant, Yass grew up middle-class in Queens, New York, and “displayed a preternatural talent for odds-making during weekends at the horse track”, says Vanity Fair. In the 1970s, he studied maths and economics at SUNY Binghamton, becoming “the nucleus” of a gang of friends who formed a poker-playing clique and gambling syndicate. Yass’s crew roamed the country, scoring big on race tracks and in casinos. In 1987, after buying a seat on the Philadelphia Stock Exchange, they formed an options trading firm dubbed Susquehanna, which still operates out of an office in Philadelphia.
Are the odds in Yass's favour?
Over the ensuing decades, Susquehanna became a huge player in this burgeoning market, says Businessweek, trading everything from silver, Swiss francs and crude oil to bitcoin and sugar. “If you can trade it, Susquehanna will likely name a price.” The firm’s traders – who are honed to think about markets “through the lens of poker and probabilities” – eschew outside influences to draw on bespoke research and algorithms. Because there are no outside investors, “the firm largely operates outside the public eye”.
Former business associates and colleagues who spoke to Businessweek reveal a man “who built one of Wall Street’s stealthiest yet most powerful trading operations”, with a network of influence that “reaches even further than his harshest critics realise”. Yet Yass and Trump “make odd bedfellows”, says Businessweek. Yass has a mind “like a calculator”; Trump’s is “more like a random number generator”. But, for the moment at least, they’re betting the same way. Doubtless Yass is keeping a weather eye on the changing odds.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
-
Chen Zhi: the kingpin of a global conspiracyChen Zhi appeared to be a business prodigy investing in everything from real estate to airlines. Prosecutors allege he is the head of something more sinister
-
Canadian stocks for a new era of deglobalisationGreg Eckel, portfolio manager at Canadian General Investments, selects three Canadian stocks
-
Chen Zhi: the kingpin of a global conspiracy
Chen Zhi appeared to be a business prodigy investing in everything from real estate to airlines. Prosecutors allege he is the head of something more sinister
-
Canada will be a winner in this new era of deglobalisation and populism
Greg Eckel, portfolio manager at Canadian General Investments, selects three Canadian stocks
-
Jim O’Neill on nearly 25 years of the BRICSJim O’Neill, who coined the acronym BRICS in 2001, tells MoneyWeek how the group is progressing
-
Build or innovate? How to solve the productivity puzzleOpinion There are two main schools of thought when it comes to solving the productivity puzzle, says David C. Stevenson
-
More clouds gather over renewable energy trusts – is there any hope for the sector?The outlook for renewable energy trusts has gone from bad to worse this year, with the industry being caught in a 'perfect storm'
-
Should ISA investors be forced to hold UK shares?The UK government would like ISA investors to hold more UK stocks – but many of us are already overexposed
-
Why Scotland's proposed government bonds are a terrible investmentOpinion Politicians in Scotland pushing for “kilts” think it will strengthen the case for independence and boost financial credibility. It's more likely to backfire
-
How Germany became the new sick man of EuropeFriedrich Merz, Germany's Keir Starmer, seems unable to tackle the deep-seated economic problems the country is facing. What happens next?
