I think it is more likely to be lobbyists at companies with business models that directly benefit from short-term policies rather than hedge funds, who could ju

I think it is more likely to be lobbyists at companies with business models that directly benefit from short-term policies rather than hedge funds, who could just exit their long position on companies most affected. The key point is that the scheme only works if no one is willing to make a loss buying LPFs. But in reality, there are companies that would willingly lose money on LPFs if it meant buying short-term policies in their interest that pay back more for them than what they lose. This scheme would provide a legal way for them to outright buy such policies, and hence probably do more harm than good.