The economy is in deep recession, the equity and credit markets continue to struggle, and few philanthropists’ pockets — especially among big-time hedge fund managers — are as deep as they once were. All the good causes supported by the kindness of rich friends and strangers are feeling the bite.
Countless charities have been on the receiving end of hedge fund generosity over the years, some of it noisy and public, much of it quiet and behind the scenes. It makes sense, then, that — as giving diminishes — a good part of the pain that foundations, endowments and nonprofit groups are feeling is in plain sight, and that some is not so obvious.
The New York Metropolitan Opera, supported by scores of wealthy donors — big hedge fund givers like Bruce Kovner of Caxton Associates included — faces budget shortfalls and recently attracted considerable attention for using two murals by Marc Chagall in...