Ex-Hedge fund CEO eyeing GOP Senate seat helped corporations outsource to 'low-cost countries': report

David McCormick, the former chief executive officer of the world's largest hedge fund, revealed in a March interview with Politico that he is weighing a run for the Republican nomination in Pennsylvania for the United States Senate in 2024.

"I believe that our political system always will self-correct," McCormick, who was defeated in the 2022 GOP Senate primary by failed candidate Mehmet Oz, told Politico. "We're in such a moment of self-correction in my opinion, and that's what I'm trying to do, is support that with the agenda here around educating our people and confronting China and securing America."

The Associated Press noted in April 2022 that "McCormick and his wife estimated the value of their assets between $116 million and $289 million, including a valuable stake in Bridgewater Associates."

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This week, Heartland Signal revealed that part of McCormick's massive net worth came from his experience consulting corporations on how to ship American jobs overseas.

"From 2001 to 2004, McCormick was the chief executive officer of a global software company called FreeMarkets. The company described its operations as a resource to help other businesses 'lower costs, reduce risks and increase profitability,'" Heartland Signal reported. "When FreeMarkets was purchased by Ariba in 2004, McCormick stayed and became the president of Ariba while FreeMarkets’ many services carried over, which included 'procurement outsourcing.'"

During McCormick's tenure as CEO, Ariba "released a guide for 'Low-Cost Country Sourcing,' which lays out strategies for businesses to cut costs and save money via shipping jobs overseas. The company also had a specific page on its website that outlined its strategy for 'low-cost country sourcing.' One of these 'low-cost countries' was India, which McCormick called an important location for country sourcing," Heartland Signal explained.

According to Heartland Signal, McCormick defended his work in 2004, stating that "big multinational companies are interested in doing business in India and, being in the business of spend management, we help them to work out what they buy and who they buy from. Services like the low-cost country sourcing program are a key differentiator for Ariba, as they enable it to offer complete spend management solutions to customers."

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Heartland Signal's full report continues here. Politico's conversation with McCormick is here.