Hedge funds have a great influence on the world of philanthropy, filled with wonderful role models – some of whom you may know, others who are more quiet. For example, Paul Jones, founder of the Robin Hood Foundation, is one of the many public faces in the philanthropy culture associated with hedge funds.
In a recent video published by InstitutionalInvestor.com, Michael Novogratz, Principal and Director of Fortress Investment Group, explains how hedge funds play a vital role in philanthropies across the globe, noting that the best kind of economy a country can have is one where cultures are developed by positive impact – not just by the people who are giving away money, but by the ones who actually use money to have a great influence on the betterment of humanity.
Novogratz goes on to explain how hedge fund experts have more of an incentive to donate to causes that they are involved with in order to become active members of their communities and the cities they live in. Take the Robin Hood Foundation, which is known for being the largest poverty-fighting organization in New York City. Upon finding the organization, Paul Jones recognized the talent hedge fund experts had for raising money, and used those talents to the advantage and advancement of New York, a city very close to his heart and to the world of hedge funds. Because many people who work in the hedge fund industry are located in New York City, the Robin Hood Foundation thrives on passionate members who truly want to make the city poverty-free. Since its beginning in 1988, the foundation has raised over $1.95 billion – incredible!
In addition, hedge fund experts and investors are well-acquainted with developing strategies in order to make a profit, which is why philanthropies who are affiliated with hedge funds tend to have a large impact on their specific cause. Novogratz says that “in the hedge fund community and the tech community there are pockets where people really have unbelievable influence, and more of a responsibility for that part of the world to help. I have a feeling that it’s going to turn into excitement.”