Nobel Foundation Hedge Fund
Nobel Foundation Turns to Hedge Funds to Boost Prize Money
When the Nobel Foundation was forced to trim its annual prize money, it turned to hedge funds to boost its return in hopes of bringing its prize money back to its former size. It is telling that the foundation, when faced with the decision of how to invest its money in hopes of achieving significant gains on its investment, has settled on hedge funds. Here is a brief interview with Executive Director Lars Heikensten (
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“When we look at the analysis we see that we can get more return with less risks by doing that,” Executive Director Lars Heikensten said in an interview at the Nobel Foundation’s Stockholm headquarters yesterday. “If we can choose hedge funds that we trust, then we can get better returns for given risks.” The fund “probably shouldn’t” be fully invested in debt securities, he said.
The Nobel foundation, created in 1900 at the request of Swedish industrialist Alfred Nobel to award prizes in physics, chemistry, medicine, peace and literature, this year cut the cash amount of its prize for the first time since 1949. The move followed a decade of poor returns, exacerbated by the onset of the global financial crisis.
The foundation had 2.97 billion kronor ($448 million) in investments at the end of 2011, corresponding to an 18 percent slump from its 2007 level, according to its website. The decline prompted a cut in this year’s prize amount to 8 million kronor, from 10 million kronor to safeguard Nobel’s capital. Source
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