Tuesday, May 22, 2012

Dartmouth Whistleblowers: Trustees Shovel Money Into Their Own Hedge Funds





We know that Dartmouth students aren't big fans of hedge funds, but it turns out the university's faculty aren't too keen on them either.  A group of Dartmouth professors and employees are requesting that New Hampshire state launch an investigation into how the college's board of directors is funneling Dartmouth's endowment money into their own hedge funds, venture capital and private equity firms. The group sent a letter to the General Attorney of New Hampshire in February notifying the state of the alleged conflicts, which they assert are in violation non-profit laws in the state.

The letter then lists a group of 10 Dartmouth trustees—out of 23 people on the board—that have ties to the investment industry and details how much of Dartmouth's endowment are invested their funds. The list of names include well known PE exec Leon Black of Apollo Management and hedge funder Steve Mandel of Lone Pine Capital.

Even worse, the money invested with the directors' firms have abysmal returns and do not benefit the university.


Read more: http://www.businessinsider.com/dartmouth-college-whistleblowers-accuse-the-trustees-2012-5#ixzz1vbppwZiT

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