Hedge fund philanthropists tap their personal resources to rebuild their foundations, but a lengthy recession, coupled with greater scrutiny of charitable activities by the federal government, could start to take a toll
By Britt Erica Tunick
When oilman-cum-hedge fund manager T. Boone Pickens donated $165 million to his alma mater, Oklahoma State University, in 2005, he vowed to rebuild the university's aging football stadium and develop an athletic village next door. The plan stirred controversy in the small town of Stillwater, Okla., where opponents asked what would happen to all the people uprooted from their homes to make way for Pickens's grand vision. But OSU was making money: Its gift was reinvested in Pickens's BP Capital hedge fund, where it grew to $407 million by the middle of 2008 as oil prices skyrocketed. The potential boon to the college town seemed worth a few displaced homeowners.
That was before energy...