Economics

Why Struggling Hedge Fund Managers Give to Charity

  • Charitable gifts boost firms’ net inflows by 9% on average
  • Underperforming managers are the most likely to give
New Year, Christmas concept table top flat lay on wooden background. Wrapped gift boxes with ornaments.Photographer: Tarik Kizilkaya/Getty Images
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A donation to a worthy cause during the holidays gets you a warm feeling, a tax deduction and maybe a better world for the kids. Some hedge fund managers give for an additional reason -- to get money-making assets.

A check to the right charity buys access to cocktail parties and galas where they make lucrative connections and raise money, according to a recent study by university researchers.