U.S. voters will likely oust the nation's political leadership for failing to put improving the economy over getting re-elected, says Anthony Scaramucci, founder and managing partner of SkyBridge Capital, a global alternative investment firm based in New York.

The U.S. economy could hit by a recession just after year end, when automatic spending cuts kick in and tax hikes end — a combination dubbed by Wall Street as "a fiscal cliff" that could siphon hundreds of billions of dollars.

Fears are growing that the White House and Congress will bicker the way they did during the 2011 debt ceiling debacle and fail to steer the country away from the fiscal cliff, allowing it to fall back into recession.

"I'm indicting both parties," says the author of "The Little Book of Hedge Funds."

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"I actually believe that our political class is practicing political malpractice on the population, and at some point the population is actually going to have to take charge of this thing and reject the people in Washington that are overspending, have the wrong tax and social policies and are not really focused on anything other than getting re-elected," Scaramucci tells Newsmax.TV in an exclusive interview.

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"So what I am hoping for is that the next president, whomever it may be, will sit down with the Congress and set targets that are reasonable and realistic on entitlement reform, on the military and on things that we need to do as a nation to get back within our means."

That doesn't mean policymakers should push through draconian spending cuts, but rather, a blend of policies that ensure growth while streamlining the debt-ridden government at the same time.

"I'm not calling for austerity, because I think that would be very damaging for the growth of the economy, but there is an interception of prudent government behavior and the right social and tax policies that can get us back to growing where we should be growing," Scaramucci says.

"The United States economy is a Super Bowl Champion economy. We have 156 million workers producing $15 trillion of GDP, but we have very, very bad management in the government that is recklessly spending money and borrowing from our future generations."

Despite political and economic uncertainty, there are good investments out there.

It just takes a trusted investor to find them, and many of those trusted advisers work at the country's hedge funds.

Long branded as high-risk but high-reward secretive pools of capital designed to allow the rich to roll the dice, hedge funds can actually provide reasonable returns for the conservative investor with modest savings, says Scaramucci, who founded Skybridge on that principle.

Skybridge requires clients to invest a minimum $50,000 and carries a 90-day lockup period, whereas much larger funds often require millions up front and require that money stay in the fund for longer than three months.

"I really do think that as an asset class and as it relates to portfolio allocation, everybody should have a little bit in the hedge fund arena. I'm not talking about 50 percent or 70 percent, but if you have a common stock portfolio or if you have a bond portfolio or perhaps some municipals, maybe something like 3-15 percent of it could be in hedge funds," Scaramucci says.

"Over a long period of time, hedge funds give you a better-than-bond-market return with less than a stock-market volatility. That could add a ballast, if you will, or an anchor to your portfolio."

Investors should allocate savings into mutual funds as well as into exchange-traded funds, which shouldn't be viewed as a more mainstream alternative to hedge funds, Scaramucci says.

Different investment vehicles serve different purposes.

"There are very good mutual funds, there are index funds and there are ETFs. It think this debate will go on forever as to what is the best asset class — I really don't want to have that debate. What I am suggesting is there is room for everybody in someone's portfolio."

A look at the 2008 financial crisis reveals that hedge funds performed quite well when compared to other asset class.

"If you want go to back to 2008, among the best-performing asset classes in 2008 were the hedge funds. Yes the Treasurys did better, but that's a very, very safe, low-yielding strategy. If you are looking to grow your assets, that means you have to put them in equities, you have to be on the ownership side of the capital structure," Scaramucci says.

"If you think about hedge funds in 2008, when the market went down 55 percent, financial services stocks went down 73 percent, the average hedge fund went down about 18-19 percent, and 18-19 percent is recoverable. You don't have a long-term sustained capital loss there and many of those hedge funds that we are talking about did spring back in 2009 and 2010."

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