Since the beginning of 2020, I've owned the domain name "eaglehillfund.com". That was my way of claiming my first ounce of ownership of my dream. That dream is rather simple: create a hedge fund whose sole purpose is to give back to the world. Hedge fund's typical goals are focused on making individuals and/or small groups money. The earnings split often follows what is known as a "2 and 20".
The fund collects a 2% management fee each year along with a 20% performance fee on any profits
This means that 80% of those profits go back to the investor
I'm dreaming of a hedge fund that approaches this a bit differently:
The fund collects a 2% management fee each year along with a 50% performance fee on any profits
The investor, of course, gets the other 50%
The fund uses the management fee and some portion of their performance fee to pay expenses
The rest is funneled into a non-profit arm of the fund
The fun part? Those same investors have ownership, along with the non-profit arm, over how those non-profit funds are used. The possibilities are endless.
Here are some of my ideas and passion points:
Funding PhD Research Grants
I'd argue that PhD Students are the primary force with which humanity advances knowledge. I firmly believe that providing even one more hungry mind the ability to tackle their passion is a worthy endeavor.
Donating to other non-profits
Ego has no place if you're genuinely trying to add some value to the world. If you believe in a worthy cause and there's already an established non-profit doing a great job in that space, why re-invent the wheel?
Investing in risky endeavors that just might help the world
You've probably heard of angel investors. An angel investor provides a young start-up with capital from the outset, hoping that the investment turns into a success but understanding that the odds are against them. Bet on enough potentially good ideas and one might hit, making it all worth it.
My desired approach: tackle those early projects that angel investors skip due to what is deemed excess risk. A start-up supposing to combat climate change with a risky scientific proposition? It might be an unwise financial bet, but these endeavors need to be given a chance. Let's give it to them! If it works, the non profit earns a return to then use to help someone else. If it doesn't, it was a donation anyway.
Creating our own initiatives
There will be plenty of times where we have an idea, only to realize another non-profit is already tackling the problem (see number 2). There will be plenty of other times where our idea is novel enough to tackle it ourselves.
That's the dream in a nutshell! Contact us to learn more.