Bloomberg Foundation Takes A Bath On Hedge Fund Investments

Jan 11 2010 | 12:35pm ET

New York City Mayor Michael Bloomberg’s charitable foundation started investing in hedge funds at precisely the wrong time.

Bloomberg won the right to move his foundation’s money from mutual funds into riskier investments, including hedge funds, in December 2007. He did, just in time for those investments to be hammered by one of the worst years in the history of the hedge fund industry.

The Bloomberg Foundation lost $279 million on its investments in 2008, thanks almost entirely to its investment with Quadrangle Group, the hedge fund and private equity firm founded by former Obama administration auto czar Steven Rattner. Bloomie lost $264 million in the QAM Select Investors fund and other $5.7 million in its QAM Private Investors Fund, the New York Daily News reports.

The losses exceeded the foundation’s giving in 2008—it handed out $235 million—but Bloomberg ensured it ended the year with more than it started by giving it another $460 million, bring its total assets to $1.6 billion.

Despite the losses, the Bloomberg Foundation stuck with Quadrangle: It still had some $975 million invested with the firm at the end of 2008.


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.