Kevin Gundle, Aurum Funds Ltd
Hedge fund managers have made a radical impact
on the financial markets over recent decades, and they are now
exerting a similar influence in the charitable sector.
The most visible feature of this trend is the increasing
amounts of capital that hedge fund managers are directing
towards the cause of their choice. In 2006, hedge fund managers
donated at least $1.5 billion equivalent to almost 5% of
total management fees to their own philanthropic
foundations, and the figure looks set to remain high despite
the credit crunch. Within the last two years, the value of the
25 biggest family foundations created by hedge fund managers
grew by over 400% from $360 million to $1.6 billion.
The hedge fund community has been instrumental in creating
some groundbreaking not-for-profit organisations such as George
Soros Open Society Institute, Chris Hohns
Childrens Investment Fund and...