Hedge Fund’s Actions Impact Sidney, Nebraska Amidst Tight Senate Race
In Sidney, Nebraska, a hedge fund led by a significant contributor to Republican Senator Deb Fischer is linked to the loss of 2,000 local jobs, causing a decline in both population and median income in the area.
Senator Fischer, who is currently running for her third term in the U.S. Senate, faces an unexpectedly tight race against independent challenger Dan Osborn.
Paul Singer, the founder and CEO of Elliott Management, a Manhattan-based hedge fund, has donated over $13,000 to Fischer’s campaigns between 2012 and 2024. Singer’s net worth is estimated at $6.2 billion.
In 2015, Elliott Management acquired an 11% stake in the outdoor sporting goods retailer Cabela’s. Although Cabela’s was profitable at the time, Elliott Management pressured the company into a public auction, resulting in its acquisition by Bass Pro Shops in 2017 for $5.5 billion.
The acquisition led to the closure of Cabela’s corporate headquarters in Sidney, affecting 2,000 employees, which constituted about 32% of the town’s population.
Following the sale, Elliott Management divested its Cabela’s shares within a week, reportedly making a profit of approximately $90 million.
Local business owner Tim O’Connell attributed the closure to Singer during a 2019 interview with Fox News, stating, “I hope Paul Singer is proud of what he did. I don’t know how he sleeps at night.”
According to a report by the Flatwater Free Press, Sidney’s population dropped by 6% after Cabela’s shutdown. Furthermore, the town’s median income decreased from $61,667 in 2017 to $49,812 by 2021.
Initially predicted to have an easy reelection, Fischer’s campaign has recently encountered challenges as Osborn, a former union mechanic and steamfitter, gains support.
A poll conducted in October by Change Research indicated Osborn leading Fischer by a narrow margin of one point.
Requests for comments from Fischer’s campaign were not immediately answered.
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