"value-added" hedge funds

[Hannah Bell]

This is the second post in a series devoted to giving hedge fund managers advice from teachers. It's only fitting, since they offer so much advice on education.


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Keep bringing those hedge fund business ethics and values to public education. That's right - more of those please. Take the way you guys rig your pay so that you take a 2% management fee, 20% of the profits, but none of the losses of all those risky bets you make...Now how do you apply all these fine upstanding values to public education?

You can own for-profit education management organizations that run charter schools. You can charge a huge management fee and another huge rent fee to every charter school you run, leaving very little money for the actual education of students.

Even better, you can declare yourself a "non-profit" and try to skirt tax rules (to be fair, Imagine Schools, a "non-profit" education management organization, has already tried this, but why not try it too?)

Then you can pay yourself a huge salary to run the schools, maybe even more money than the mayor and the chancellor, even though all you're managing is three or four charter schools. And when anybody looks at you askance over the pay, you can say "We've let the market dictate the pay scale..."

http://nyceducator.com/2010/09/on-hedge-funds.html

[Mnemosyne]

1. KnR... n/t