TCI Charity Hit By Hedge Fund’s Troubles

Jun 8 2010 | 12:23pm ET

The Charitable Foundation that gives The Children’s Investment Fund its name has fallen on hard times along with the hedge fund.

The Children’s Investment Fund Foundation, which receives a set portion of TCI’s fee income, received just £19 million from the hedge fund last year, down from £486 million in 2008, Financial News reports. TCI has been hurt by poor performance in recent years and has seen a raft of high-level departures over the past several months.

Not even its own charity has stuck by it, with foundation slashing its investments in the hedge fund from £1.5 billion—essentially all of its money—to just £17 million, as part of its plan to diversify its investments.

The TCI Foundation said its assets had fallen by £100 million last year after doubling in 2008. It awarded £17.9 million in grants, down from £30.6 million in 2008. The charity said the lower payouts reflected a streamlining in its due diligence processes.


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