An article today on Bloomberg.com explores one of the biggest forces in today’s global philanthropy: hedge fund leaders. The authors emphasize the weight these hedge fund philanthropists place on results: “If a hedge fund manager is going to give money, we want them to give based on the effectiveness of the charity,” says Martin Brookes, chief executive officer of NPC and a former international economist at Goldman. “There is much more focus on what the money achieves.”
The article details some pretty inspiring results from the work of leaders in the field, including Chris Cooper-Hohn of The Children’s Investment Fund LLP or TCI, and the Children’s Investment Fund Foundation, or CIFF, run by his Harvard-educated wife, Jamie Cooper-Hohn. One example highlighted is that of a 3.7 million pound grant in 2005 from CIFF to the Clinton Foundation which enabled the Clinton Foundation – together with a coalition of government and nonprofit agencies – to reduce the price of a year’s dosage of antiretroviral drugs to $180 from $1,500.
These hedge fund leaders vow that they will continue their philanthropy in these difficult times, even though their investments may suffer. Let’s hope they mean it.