Investment always involves some measure of risk, that is of course unless you are the 92nd Street Y, one of New York City’s premier cultural institutions. The group, which is invested in John Paulson’s Paulson & Co funds, amongst others, is getting a free pass this year, courtesy of the man himself – John Paulson.
John Paulson – Not ‘Your Average Money Manager’
“Paulson, a member of the organization’s board, has guaranteed he will cover the Y for any losses it incurs in his funds, writes the New York Times. “Barring a sharp recovery, Mr. Paulson will have to write a personal check to the organization for several million dollars.” According to New York Times, this sum could be as much as $4 million. The case is unusual at best. Andrew M. Grumet, a lawyer specializing in philanthropy explains that while the arrangement is “very uncommon,”the 92nd Street Y isn’t your average nonprofit, and John Paulson isn’t your average money manager.” Paulson’s agreement with the 92nd Street Y ” is alluded to in the organization’s financial statements, where it is disclosed in a footnote titled ‘related-party transactions.”
Schenker, Sandler and Anonymous 4th Offer 92nd St Y Same Protection
Apparently, other fund managers agree with Paulson. “Other hedge fund managers who have the arrangement with the 92nd Street Y are board member Curtis Schenker, the chief executive of Scoggin Capital Management, and Ricky Sandler, the head of Eminence Capital, whose wife serves as a director. The fourth manager was not disclosed.” “The disclosure says that four board members or their immediate families manage money for the 92nd Street Y’s investment portfolio, and that they promised to cover any losses,” reports the New York Times. “They also agreed to reimburse the organization for certain fees on the investments.” The Times explains,