Hedge-Fund Charities Raise Their Profiles

Hedge funds—the lightly regulated investments designed to protect, or hedge, against changing market conditions, are more often associated with secrecy and a ruthless focus on profits than with generosity. But some funds are hoping to change those perceptions through their philanthropic efforts, reports The New York Times.

One such effort is Hedge Funds Care, a charity founded in 1998 by Rob Davis, a national sales manager at a top investment firm. The group has given away approximately $22-million. Other hedge-fund charities include the Robin Hood Foundation, in New York, which raised $48-million at its annual benefit last year, and the Children’s Investment Fund, in London, which has received $66-million in financial support. Using similar approaches they have used to amass great wealth, hedge-fund charities seek large returns from their donations.

Mr. Davis says that hedge funds do not receive proper credit for their efforts: “This is the most philanthropic industry on the planet, but you almost never hear about it.”

For more on giving by hedge-fund managers, read Betting on Hedge Funds, in The Chronicle of Philanthropy.

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