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    Dr. Oz’s Heritage Is Targeted as Rivals Vie for Trump Backing

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    The Senate candidate’s Turkish background has emerged as a focus of David McCormick’s attacks in Pennsylvania’s G.O.P. primary.Late last year, before he had formally entered the Pennsylvania Senate race, David McCormick flew to Florida for a private meeting with Donald J. Trump, angling to get in the former president’s good graces ahead of a Republican primary that would soon pit him against Dr. Mehmet Oz, the celebrity surgeon and television personality.Mr. McCormick, then the chief executive of the world’s largest hedge fund, had an edge in pitching Mr. Trump: His wife, Dina Powell McCormick, had been a senior national security official in the Trump White House, and she accompanied him to the meeting at Mar-a-Lago.As Mr. McCormick and his wife, now a top Goldman Sachs executive, made their case, the topic soon turned to electability and Dr. Oz’s Turkish American heritage, which has since become a central point of contention in the campaign. At one point, Ms. Powell McCormick, an Egyptian-born Coptic Christian who is fluent in Arabic, pulled out a picture that showed Dr. Oz alongside others wearing Muslim head coverings, according to four people briefed in detail on the exchange, which has not previously been reported.The people briefed on the conversation said Ms. Powell McCormick told Mr. Trump that the fact that Dr. Oz was Muslim would be a political liability in parts of Pennsylvania.The McCormick campaign denied that account and insisted that the McCormicks have focused only on Dr. Oz’s ties to Turkey as a liability.The early meeting with Mr. Trump was just one sign of the intensity of the race to succeed the retiring Senator Pat Toomey, a Republican. The Pennsylvania seat is a linchpin in both parties’ pursuit of the Senate majority in 2022. And with polls showing a competitive Republican contest, the race is already awash in negative ads and on pace to be one of the most expensive primaries in the nation.Mr. Trump’s blessing is widely seen as potentially decisive.A spokesman for Mr. Trump confirmed the private meeting with the McCormicks took place but declined to comment on anything said.The McCormick campaign has publicly made Dr. Oz’s heritage an issue from Mr. McCormick’s first day as a candidate in January, when he called on Dr. Oz to renounce his Turkish citizenship. His campaign has since accused Dr. Oz of harboring “dual loyalties.” Dr. Oz’s Muslim faith has not been part of the public debate.Mr. McCormick’s spokeswoman, Jess Szymanski, echoed the concerns he has been raising publicly.“This is an anonymous, false smear on a candidate’s wife who is an Arab American immigrant woman who fled the Middle East to escape religious persecution,” Ms. Szymanski said of the account of the McCormicks’ meeting with Mr. Trump. She said that it was “designed to distract from the legitimate national security concerns” about Dr. Oz that “could pose significant security risks,” including his dual citizenship, his Turkish military service, connections to the Turkish government and financial links abroad.“The assertion that any points beyond those have ever been raised is categorically false,” Ms. Szymanski said.Dina Powell McCormick, an Egyptian-born Coptic Christian who served as a senior national security official in the Trump administration, maintains strong ties to the Middle East.Craig Barritt/Getty Images for Tory Burch FoundationBorn in Ohio to Turkish immigrants, Dr. Oz did serve in the Turkish army and has said that he maintained dual citizenship in recent years to make it easier to visit his mother, who has Alzheimer’s disease and lives in Turkey.But Dr. Oz’s ties to Turkey have lingered as an issue, as there is no known precedent of a sitting senator holding dual citizenship with a nation that can be at odds with American foreign policy. (After Senator Ted Cruz of Texas learned he had Canadian citizenship, he renounced it in 2014.)How Donald J. Trump Still LoomsGrip on G.O.P.: Mr. Trump remains the most powerful figure in the Republican Party. However, there are signs his control is loosening.Power Struggle: Led by Senator Mitch McConnell, a band of anti-Trump Republicans is maneuvering to thwart the ex-president.Midterms Effect: Mr. Trump has become a party kingmaker, but his involvement in state races worries many Republicans.Post-Presidency Profits: Mr. Trump is melding business with politics, capitalizing for personal gain.Just the Beginning: For many Trump supporters who marched on Jan. 6, the day was not a disgraced insurrection but the start of a movement.On Wednesday, Dr. Oz said that he would renounce his Turkish citizenship if elected. Calling the issue a “distraction,” he accused Mr. McCormick of making “bigoted attacks” that were “reminiscent of slurs made in the past about Catholics and Jews.”Dr. Oz would be the first Muslim senator in the United States, but he has not emphasized that history-making aspect of his candidacy. In an opinion essay in the Washington Examiner in January, he wrote that he had been “raised as a secular Muslim” and that his four children are all Christian.The four people who described the exchange between the McCormicks and Mr. Trump did not know the setting or the source of the photograph they said Ms. Powell McCormick showed the former president. Among the few images readily accessible online in which Dr. Oz can be seen with people wearing Muslim head coverings are scenes from his father’s 2019 funeral in Istanbul. A video shows Dr. Oz behind two imams wearing turbans and clerical robes; later, he helps carry the coffin, draped in a green pall decorated with Quranic verses.Ms. Powell McCormick was a key member of the White House’s Middle East team in the early days of the Trump administration and maintains extensive ties to the region. At Goldman Sachs, she oversees the firm’s global business with foreign governments and their investments, and this month, she was appointed by the top Republican in the House to serve on the advisory board of the Middle East Partnership for Peace, which is guiding investments of $250 million to promote Israeli-Palestinian coexistence.In a sign of the perceived power of the former president’s endorsement, Ms. Powell McCormick has called Mr. Trump so often in recent months that he has complained to people about the frequency of her calls, according to two people who have heard from him about it.On his first day as a candidate, Mr. McCormick called on Dr. Oz to renounce his Turkish citizenship.Libby March for The New York TimesFor now, Mr. Trump remains uncommitted even as both camps have aggressively sought his stamp of approval. The former president’s initial choice in the race, Sean Parnell, withdrew in November after losing custody of his children following allegations of abuse in a divorce proceeding.Dr. Oz spoke with Mr. Trump by phone before entering the Senate race in late November, and in person at Mar-a-Lago just before Christmas. On Wednesday, he and his wife, Lisa Oz, had dinner with Mr. Trump and Melania Trump.Sean Hannity of Fox News, who endorsed Dr. Oz this week, has been whispering in Mr. Trump’s ear on Dr. Oz’s behalf, according to people familiar with those conversations, and Dr. Oz has made a dozen appearances on Mr. Hannity’s prime-time show since he entered the race, according to Media Matters, the liberal media watchdog group.The Pennsylvania Republican primary has already seen millions of dollars in television ads, as both rivals sell themselves as the most conservative and most pro-Trump candidate.An anti-Oz super PAC has slammed the surgeon as a “RINO,” or Republican in name only, with vivid images of him kissing his Hollywood star. Dr. Oz has narrated some of his campaign’s ads counterattacking at Mr. McCormick, saying in one, “He’s part of the swamp that labeled President Trump as Hollywood — just like they say about me.”In one commercial referring to his rival by name, Mr. McCormick did so not with the familiar “Dr. Oz” but as “Mehmet Oz.” Standing in front of an oversize American flag, Mr. McCormick opens the ad by saying, “When Mehmet Oz questions my patriotism, he’s crossed the line.”The McCormick campaign has hired influential Trump alumni to guide its effort, including the former White House aides Stephen Miller and Hope Hicks, and the McCormicks’ private lobbying has included a separate dinner with Donald Trump Jr., according to people told of the meal.Mr. McCormick himself was considered for various posts in the Trump administration, and met with the president-elect in 2016, though he never joined the government.But a Trump endorsement of Dr. Oz would have its own logic. Like Mr. Trump himself, Dr. Oz built a national following as a television star. The former president has told people who have spoken to him about the race that he deeply appreciates the political power of such a celebrity given his own experience. And in 2016, Dr. Oz interviewed Mr. Trump on his show at the height of the presidential campaign.A third Senate candidate, Carla Sands, whom Mr. Trump named ambassador to Denmark, is also running in Pennsylvania and had her own private audience with the former president last year. A fourth candidate, Jeff Bartos, has contributed more than $1 million to his own campaign. He was the 2018 Republican nominee for lieutenant governor and entered the Senate race in March 2021 — more than six months ahead of either Mr. McCormick or Dr. Oz. Mr. Bartos has not had a formal sit-down with Mr. Trump, though the two spoke at an impromptu meeting at Mar-a-Lago a few months ago, according to a person told of the interaction.Also running is Kathy Barnette, a political commentator who has written a book about being Black and conservative and has raised more than $1 million.Limited public polling shows a wide-open contest. A Fox News survey in early March showed Mr. McCormick leading, with 24 percent, and Dr. Oz at 15 percent, but many voters were undecided. The Democratic field includes Lt. Gov. John Fetterman, Representative Conor Lamb and Malcolm Kenyatta, a state representative.The pro-Trump label can be an awkward fit for both Mr. McCormick and Dr. Oz.Mr. McCormick is the former chief executive of the Bridgewater hedge fund and served in the Treasury Department of the second Bush administration. His career arc from West Point graduate to the financial world more neatly fits the traditional Republican establishment mold, and he said last year that the riot on Jan. 6 at the Capitol was “a dark chapter in American history.”For his part, Dr. Oz first found fame as a regular guest on “The Oprah Winfrey Show,” and clips showing him dancing with Michelle Obama have made their way into ads attacking him. He previously supported key elements of the Affordable Care Act and, while he calls himself “pro-life,” he struggled in a Fox News interview to articulate when he believes life begins.Mr. Trump, according to advisers, has tracked the race closely but appears content — for now — to sit on the sidelines. He jealously guards his endorsement record and was already burned by his early backing of Mr. Parnell. Facing the possible defeat of candidates he is backing in other states, Mr. Trump has turned at least temporarily more cautious in some key Senate races.Just as he is doing in two other crowded Republican primaries, in Ohio and Missouri, Mr. Trump is not picking sides while the field remains muddled. In both those states, he has also met with multiple candidates vying for his backing.Rob Gleason, a former chairman of the Pennsylvania Republican Party, said a Trump endorsement in the state’s race “could be the tipping point in a close election.“He’s just very important in Republican circles,” he said. “He still is.” More

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      David McCormick Faces Scrutiny Over Teacher Pension Investments

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      David McCormick, a Republican Senate candidate in Pennsylvania, came under attack from his chief rival, Dr. Mehmet Oz, over the underperformance of investments for the state’s teachers.Before he entered Pennsylvania’s Senate race, David McCormick oversaw a giant hedge fund that invested billions of dollars for the retirement plans of the state’s teachers.But Mr. McCormick’s company, Bridgewater Associates, delivered such middling profits and charged such high fees that the Pennsylvania teachers’ retirement fund moved to sell off its Bridgewater holdings beginning two years ago.Overall, Bridgewater’s performance was a contributing factor in nearly a decade of poor returns for the retirement fund, trustees of the fund said in interviews.The impact is now being felt indirectly by thousands of teachers who have to pay more from their paychecks to fund their retirements, an extra $300 annually in some cases.Since jumping into the Republican primary in January, Mr. McCormick has offered his business career as a qualification for the open Senate seat in November, but he has made little mention of his connection to the state’s teacher pension fund, which has long been mired in controversy, nor to the more than $500 million in fees that Bridgewater was paid by the fund.But on Tuesday, Mr. McCormick’s chief Republican rival, the celebrity doctor Mehmet Oz, sought to use those high fees and Mr. McCormick’s decade on top of Bridgewater, the world’s largest hedge fund, against him.“We’re stuck with a half-a-billion-dollar bill while he and his colleagues got half a billion in fees,” Dr. Oz said outside the Harrisburg headquarters of the pension fund, the Public School Employees Retirement System, known as PSERS. He addressed a small group of supporters with a large prop check made out for $500 million.“The fact that no one knows this story,” he added, is “shameful.”Until 2019, the retirement fund had nearly $5 billion invested with Bridgewater, among the most of any firm, and it was one of the hedge fund’s top clients.In response to Dr. Oz, the McCormick campaign said that Bridgewater had made plenty of money for the retirement fund and that Mr. McCormick, who served as president and later as chief executive of the hedge fund, was not directly involved in overseeing its relationship or investments with PSERS.The dispute is the latest round in a slugfest between Mr. McCormick and Dr. Oz, whose primary contest will help shape one of the most crucial races this year for control of the Senate. The two candidates and their outside supporters have already spent a state record $30 million in attack ads ahead of the May 17 primary. A Fox News poll this month of potential Republican voters showed Mr. McCormick on top of a five-person field, although many voters are undecided.A Guide to the 2022 Midterm ElectionsMidterms Begin: The Texas primaries officially opened the 2022 election season. See the full primary calendar.In the Senate: Democrats have a razor-thin margin that could be upended with a single loss. Here are the four incumbents most at risk.In the House: Republicans and Democrats are seeking to gain an edge through redistricting and gerrymandering, though this year’s map is poised to be surprisingly fairGovernors’ Races: Georgia’s contest will be at the center of the political universe, but there are several important races across the country.Key Issues: Inflation, the pandemic, abortion and voting rights are expected to be among this election cycle’s defining topics.A West Point graduate and former Treasury Department official, Mr. McCormick was recruited by Bridgewater as president in 2009, rose to co-chief executive in 2017 and became sole chief executive in 2020 before leaving in January to run for Senate.The Pennsylvania teachers’ pension fund has been troubled for years. Besides hedge funds, it put its money into highly risky “alternative” investments including trailer park chains, pistachio farms and pay phone systems for prison inmates.In mid-2020, the fund’s annual profits over nine years, a decade when the stock market boomed, amounted to just 6.34 percent, missing a target set by Pennsylvania law.The shortfall prompted $80 million in higher paycheck deductions for about 100,000 teachers and other school employees, as well as higher property taxes for homeowners statewide, to pay for school districts’ makeup contributions to the pension fund, said Stacy Garrity, the state treasurer.Mr. McCormick’s campaign said that he had not directly been involved in overseeing Bridgewater Associates’ relationship with the Pennsylvania teachers’ retirement fund or overseeing the fund’s investments.Libby March for The New York TimesMr. McCormick, who declined to be interviewed, said through a campaign spokeswoman that PSERS’s poor performance was not the fault of its Bridgewater holdings — as Dr. Oz argued — and that those holdings had earned money for the pension fund. “Pennsylvania retirees made $3.9 billion in net profits and did not lose a penny over the life of the relationship under Bridgewater management,” the spokeswoman, Jess Szymanski, said.Still, some Bridgewater investments did miss internal benchmarks that the retirement fund had set, which contributed to the decision by the board of trustees to sell off its Bridgewater investments, along with those in other hedge funds.In the most recent quarterly reporting period, PSERS’s largest Bridgewater investment, the Pure Alpha II fund, underperformed a benchmark for comparable funds over the preceding three-, five- and 10-year periods. It exceeded the benchmark over a one-year period.More important than the individual Bridgewater investments, according to board members, was that Bridgewater’s investment philosophy came to dominate the retirement fund’s broad portfolio, currently valued at more than $72 billion.At a July 2020 meeting with senior retirement fund staff members, Joseph Torsella, the state treasurer at the time, criticized Bridgewater’s poor performance and its wide influence over the pension fund.Mr. Torsella, a Democrat, said in an interview, “I got the sense we were important at the highest level of Bridgewater, and I got the sense at PSERS that Bridgewater was the one true church.”Bridgewater, which manages about $140 billion, largely for institutional clients, is known as much for a culture in which employees bluntly air their differences as it is known for its investing record. It boasts of earning customers tens of billions of dollars over four decades.Its founder, Ray Dalio, is a multibillionaire who popularized an investing strategy known as “risk parity.” It promises to make money in both good and bad economic times by placing bets across different types of assets such as gold, Treasury bonds and sovereign wealth funds.During the 2008 financial crisis, when stocks went into a free-fall, Bridgewater’s Pure Alpha fund gained 9.5 percent. That was the start of an infatuation with Bridgewater by the professional staff at the Pennsylvania teachers’ fund, according to board members and their aides.Walloped by its declining stock holdings, the retirement fund embraced the risk parity model. It not only loaded up on Bridgewater’s own funds, it molded itself into a Bridgewater-like hedge fund.A report for the Pennsylvania legislature in 2018 found that PSERS’s portfolio allocation “reflects a risk parity model.”Mr. McCormick on the campaign trail in Edinboro, Pa. He topped a recent Fox News poll of Republican primary candidates, though many voters were undecided.Libby March for The New York TimesIt was a highly unusual, and risky, approach for a public fund that sends monthly checks to 250,000 former teachers, custodians and other school employees.“The real impact of Bridgewater on PSERS was not just that Bridgewater was one among a couple of hundred managers — they were the guru,” said Mr. Torsella, who was part of a bipartisan group of board members who began challenging the way the pension fund was run. “Too many of the investment team at PSERS became acolytes of Bridgewater. There was too much deference to their way of thinking.”Certainly, no one at Bridgewater was twisting the arms of PSERS’s staff to imitate the hedge fund’s strategy.Still, teams of retirement fund staff members trooped to Bridgewater’s wooded campus in Westport, Conn., or hosted Bridgewater consultants in Harrisburg for daylong seminars. In 2019, top pension fund executives flew to China for two Bridgewater events, including a weeklong “investor summit,” at a cost of $4,467 in travel.Over the decade following the financial crisis, as the stock market recovered and boomed, PSERS’s embrace of a risk parity model of investing had a disastrous impact on the pension fund’s bottom line. As of 2018, the retirement fund’s returns over a decade ranked 50th out of 52 public pension plans nationwide, according to the report for state lawmakers.Although Bridgewater’s funds were promoted as a way to weather a bear market in stocks, the arrival of the pandemic in 2020 proved that the complex financial straddles didn’t live up to the hype. Bridgewater’s Pure Alpha fund was underwater for the year, even as the S&P 500, the broad stock market index, gained more than 16 percent.The dissidents on the PSERS board, who favored a plain-vanilla portfolio of largely public stocks and bonds, succeeded in pushing the pension fund to sell off two of its Bridgewater funds, All Weather and Optimal, and to eventually liquidate all of its hedge fund investments.In July 2021, the pension fund was forced to increase paycheck deductions for 94,400 school employees hired since 2011.Samantha Kreda, who teaches special education to third to fifth graders at the Richard R. Wright School in Philadelphia, was one.Samantha Kreda in her classroom in Philadelphia.Hannah Yoon for The New York Times“The PSERS increase amounted to $30 every paycheck, but that’s a huge amount of money considering all the things teachers are expected to pay for,” she said. She buys books, snacks, birthday gifts and school supplies out of her pocket for students in her high-poverty school. Rather than cut back on those extras, she said, she has reconsidered “splurges” like dinner out with her boyfriend.Ms. Kreda, 27, who has a master’s degree from the University of Pennsylvania, knows Ivy League peers who went into law or finance and now make “unfathomable” salaries. “I love my job; I don’t teach for the paycheck,” she said. Still, a $30 deduction from her biweekly pay gives her pause. “It definitely makes a difference,” she said.Maureen Farrell More

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      David McCormick Joins Republican Senate Primary in Pennsylvania

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      A former Treasury official, Mr. McCormick has drawn comparisons to Glenn Youngkin, the financier recently elected governor of Virginia.David McCormick, the former chief executive of Bridgewater Associates, the world’s largest hedge fund, filed paperwork to run for the Senate in Pennsylvania as a Republican on Wednesday, entering a crowded but unsettled field in what is likely to be one of the most hotly contested midterm elections.A former Treasury Department official and a former Army captain, Mr. McCormick, 56, joins a number of other major Republican and Democratic contenders vying to succeed Senator Pat Toomey, a Republican, who is retiring. His official announcement is expected in the next day or two, according to a campaign adviser, Kristin Davison.Mr. McCormick’s filing came after the Pennsylvania Democratic Party asked federal election officials last week to investigate his spending large sums for television ads in the Pittsburgh region without declaring himself a candidate.The race is for the only open Senate seat in a state won by President Biden and is seen as a tossup, making it a critical battleground for control of the chamber, now divided 50-50 with Vice President Kamala Harris’s deciding vote giving Democrats a majority.The early jockeying in the Republican field has been characterized by most candidates’ efforts to win the support of grass-roots voters who backed former President Donald J. Trump. They include Kathy Barnette, a conservative commentator who has fanned the false conspiracy that Mr. Trump won Pennsylvania in 2020, and Carla Sands, a wealthy former ambassador to Denmark under Mr. Trump, who has promised to “stand up to woke culture, censorship, and critical race theory.” Dr. Mehmet Oz, the heart surgeon and longtime television host, has framed his candidacy as a conservative response to the pandemic, criticizing mandates, shutdowns and actions by “elites” that restricted “our freedom.”Mr. McCormick has his own personal tie to Mr. Trump: His wife, Dina Powell McCormick, served on the National Security Council during the first year of the Trump Administration. The two were married in 2019. Hope Hicks, a former Trump aide, has been advising Mr. McCormick’s team, and other former Trump staffers, including Stephen Miller, are expected to do so, according to Politico.Five months ahead of the May primary, the field is wide open, especially since the withdrawal in November of Sean Parnell, who was endorsed by Mr. Trump. Mr. Parnell suspended his campaign after losing a custody fight with his estranged wife, who accused him of spousal and child abuse.In a sign of what is sure to be a highly competitive G.O.P. race with several wealthy contenders, Mr. McCormick drew attacks even before he joined the race. A super PAC supporting Dr. Oz unveiled a digital ad this week criticizing Mr. McCormick “as a friend of China with a long record of selling us out.” Bridgewater manages some $1.5 billion for Chinese investors, and its only other office outside of Connecticut is in Shanghai. And Jeff Bartos, a real estate developer who is also seeking the Senate nomination as a Republican, accused Mr. McCormick of sending Pennsylvania jobs to India in 2003.The McCormick campaign disputed the characterization made by Mr. Bartos, and, on China, pointed to his record while a senior trade official in the Commerce Department in the George W. Bush administration. “These attacks from the Oz camp are a desperate attempt of a candidate whose failure to launch has stalled his campaign,’’ said Jim Shultz, a former aide to Pennsylvania’s last Republican governor, Tom Corbett, and a supporter of Mr. McCormick.Democrats also face a crowded primary contest. Unlike the Republicans, the leading Democrats in the race have experience in elected office. One theme that could animate the general election, depending on who emerges as the G.O.P. nominee, is the issue of who is an authentic Pennsylvanian. Dr. Oz, Ms. Sands and now Mr. McCormick all have roots in the state, but lived elsewhere in recent years and returned to run for Senate.Ideologically, Republicans promoting Mr. McCormick’s bid have drawn comparisons between him and Glenn Youngkin, the former private equity executive who won the Virginia governor’s race in November by attracting the support of moderates as well as Trump devotees.Largely unknown outside the financial world, Mr. McCormick grew up in Bloomsburg, Pa., near Wilkes-Barre. He graduated from West Point and served five years in the Army, then earned a Ph.D. in international relations at Princeton.A McKinsey consultant for several years, Mr. McCormick later ran the Pittsburgh-based internet auction company FreeMarkets, then sold it to the larger tech company Ariba in 2004.He joined Bridgewater in 2009 and in 2017, he was named co-C.E.O. of the Westport, Conn.-based hedge fund, which manages $150 billion in assets. His name was repeatedly floated to be the Defense Department deputy during the Trump administration.In 2020, he became Bridgewater’s sole chief executive after his co-chief, Eileen Murray, left the firm. She later sued Bridgewater over a pay dispute that she said stemmed partly from gender discrimination. The suit was settled in 2020.On Jan. 3, Mr. McCormick announced his resignation from Bridgewater, calling his potential Senate run “a way of devoting the next chapter of my life to public service” in a farewell email to employees.Mr. McCormick bought a home recently in Pittsburgh’s East End to re-establish residency in the state, the Pittsburgh Post-Gazette reported. He had split his time between Connecticut and New York City in recent years, though since about 2010 he has owned the family Christmas tree farm where he was raised. More