Hedge funds are misunderstood aspects of our national and state economy. Many people don’t quite understand what they do, but hedge funds are important actors in our economic system that work and deliver for ordinary Americans. Legislative attempts aimed at curtailing hedge fund activity would only hurt their underlying investors: pensions, non-profits, and university endowments.
Across the country, these underlying investors make significant investments in hedge funds. It’s no different in Utah, where organizations like the University of Utah Endowment Fund and Westminster College invest millions on behalf of thousands of students. Nonprofits such as the Best Friends Animal Society also invest significantly in hedge funds. These entities place a tremendous amount of trust in these investments to deliver for them, speaking volumes to the confidence they have in hedge funds. Hedge funds employ sophisticated market investment strategies to ensure that their institutional investors, groups like Westminster College and Best Friends Animal Society, are financially secure and can continue to serve their communities.
Excessive taxes on hedge funds won’t raise any money for politicians’ pet projects. They will only hurt underlying investors during what is supposed to be a recovery period from a global pandemic.