By Danielle Beurteaux
Leon Cooperman is one of the few hedge fund managers whose name is often prefaced with the word "legendary." As an investor, he knows a good opportunity when he sees it. As a philanthropist, he doesn't hesitate to help out when the opportunity arises.
When Dale Frey took the helm at the Damon Runyon Cancer Research Foundation board and needed some new talent, he went right to Cooperman. Frey, former chairman of the board and president of General Electric Investment Corporation, knew Cooperman from his days at Goldman Sachs, where Cooperman was a general partner before founding Omega Advisors, the now-$4.5 billion fund, in 1991. Cooperman didn't hesitate to jump on board in 1996. "All of us have a moral imperative to give back," says Cooperman.
The Damon Runyon Cancer Research Foundation was started in 1946 by journalist Walter Winchell and named after his friend, the literary legend Damon Runyon, who died of throat cancer that same year. The foundation's awards are among the most sought-after and competitive in the medical research field, with only 41 out of 490 applicants making the grade in 2009, and more than $220 million in grants given out over the organization's history.
The organization funds only early-career scientists and researchers because, says Cooperman, demand for resources is great and younger scientists have difficulty getting money to do their research. But Damon Runyon is all about investing in new talent with bold ideas—high-risk innovations that could result in extraordinary gains. The awards also give young scientists confidence and allow them to focus on their work. "The grants take away some of the financial stress and give them the opportunity to do their research unencumbered by outside considerations," says Cooperman. "It's like venture capital for cancer research."
The foundation's bets have paid off many times over: Major developments in lung, skin and breast cancers, among others, have come from Damon Runyon-funded scientists, and they've funded 11 Nobel Prize winners. Ever the investor, Cooperman likens their Nobel success to the markets. "That's like picking 11 stocks that go up."
Cooperman, who became vice chairman of finance and treasurer in 2002, oversees investment of the foundation's $50 million endowment, part of which is invested with Omega Advisors pro bono. "My job is to generate a good return on the foundation's assets, so they can get more money to fund more scientists and increase the probability of finding a solution." Costs are covered by the endowment and the Damon Runyon Broadway Tickets service, which sells hard-to-get prime seats for twice the ticket value, half of which is a tax-deductible donation.
Frey knew Cooperman was the perfect fit to run the endowment. "There is no one I know who is as knowledgeable on the financial markets, principally equities, as Lee Cooperman," says Frey. "He's also been personally very generous."
Cooperman, who grew up in the South Bronx, has long been active with other nonprofits. He's on the boards of St. Barnabas Medical Center Foundation, the New Jersey Performing Arts Center and Columbia Business School, where he was a member of the class of 1967. "I've made a good living. I want to share that with the community at large," he says.
The work at Damon Runyon will continue, says Cooperman, until it is no longer needed. "We've made people's life expectancy greater, we've made their quality of life better, but we've not found the cure."