Can hedge funds save the world? One pundit thinks so

“HEDGE funds are fundamentally evil and there is no way to view them in any other light. You’re a great guy, but let’s not be ridiculous!” This was the response that Jed Emerson received from several erstwhile supporters when he circulated a draft paper claiming that, in at least some circumstances, the activities of hedge funds could be good for society and even for the planet.

Many people might struggle with the idea of hedge funds being a force for good, regarding them as obsessively focused on short-term financial gain regardless of the environmental or social consequences. And Mr Emerson makes an unlikely defender of them, since he is as green in tooth and claw as a capitalist can be. Having first worked organising projects for the homeless, then as one of the first “venture philanthropists”, he made his name with a series of academic papers on what he calls blended value—the notion that the performance of a business should be judged not just by its profitability, but also by its impact on society and the environment. …