Paying for failure, TCI edition
Tom Cahill, June 24:
Christopher Cooper-Hohnâ€™s $9.5 billion hedge fund proposed cutting fees and easing withdrawal limits to retain clients after top executives quit and it lost 43 percent last year, according to three investors…
TCI earmarks a portion of its fees for the Childrenâ€™s Investment Fund Foundation, a charity run by Cooper-Hohnâ€™s wife, Jamie. The effective fees, split between the fund and the charity, had been 2 percent until losses in 2008, said the TCI investors.
Matthew Bishop, June 26:
As The Economist went to press the Childrenâ€™s Investment Fund Foundation, a charity based in London, was due to announce that it had received a whopping ÂŁ495m ($812m) in the 2008 fiscal year from TCI, a hedge fund, under covenants built into the fund when it was founded by Christopher Cooper-Hohn in 2003.
$812 million is 8.5% of $9.5 billion. Just sayin’.