WEST PALM BEACH, FL (HEDGECO.NET) – Investment portfolios of charitable organizations have been growing over the years, in fact such portfolios have actually doubled within the last 12 monthsaccording to published reports. In a latest survey of 133 charitable organizations, the respondents were asked if they invest in hedge fund strategies. About 13% of the charities said they invest inhedge fund managers. In the year 2002, only 7% of such organizations said they utilize hedge fund managers. Jeremy Wells, of JP MORGAN FLEMING ASSET MANAGEMENT COMPANY, conducted the study.
Mr. Wells explained that many institutional and other investors are beginning to better understand hedge funds and their investment philosophy. The general population due to a lack of understanding of them has viewed hedge funds negatively. Many people also criticize hedge funds because of its little transparency provisions.
Such criticisms have dwindled in recent times because many hedge fund managers have increased their transparency provisions to the funds investors, to the point that such investors can today obtain such information by the click of their computer mouse.
This shift in investment strategy follows the trend, which began during the stock market tumbles of the past three years. Many charitable organizations lost a significant portion of their stock market portfolios during the general stock market meltdown of recent years.
In the United Kingdom, a Charity Commission recently gave its permission for hedge funds to be sold as �an investment fund� which is classified as a tax-free investment. Caszenove Fund Management requested permission to set up a fund of funds portfolio under the charitable tax-free scheme, and was granted such permission.
Paul Oranika
Editor-in Chief
HedgeCo.Net
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