A new Hedge Clippers report
shows that Ohio universities are making risky, expensive hedge fund investments.
Hedge Clippers is a group that works to expose public investments in hedge
funds, which often charge higher fees and produce lower returns than index funds. Hedge fund billionaires frequently use their profits to fund anti-worker and anti-public education initiatives. Hedge Clippers brings attention to these issues in order to encourage public entities to divest from hedge funds.
Their latest report
on Ohio university endowments revealed these key findings:
* Twelve Ohio colleges and universities paid about $425 million dollars in fees to hedge fund managers since the Great Recession -- enough to provide over 8,000 full in-state scholarships at Ohio public universities per year.
* Eight Ohio public universities paid an estimated $238 million in hedge fund fees; the four large Ohio private universities included in our analysis paid nearly as much, with an estimated $187 million in fees to hedge fund managers since 2009.
* These fees are in no way justified by returns. According to estimates, these twelve universities on average paid an unbelievable 65 cents in fees to hedge fund managers for every dollar of net return to the endowment fund from 2009-2015.
* Hedge funds operate without transparency and without accountability. Hedge fund managers do not have to disclose to universities how much they are collecting in fees, and universities are not obliged to report to the public how much they have invested in hedge funds, which hedge funds they are invested in, and how these hedge funds have performed.
* High fees rip off Ohio taxpayers and colleges while hurting Ohio communities. Hedge fund managers are using the fortunes they've grown through exorbitant fees to fund politicians and initiatives that put Ohio communities at risk.
Take a look to see if your institution made the report