Op-Ed John Hendley: Investments in hedge funds help ensure access to higher education

Higher education has helped countless North Carolinians achieve a bright and successful future — for our children, our families, and our state. But not everyone has the same access to the opportunities a higher education provides. Many individuals simply don’t have the same access to a quality higher education as others, regardless of the work they put in or the ambitions they have.

One of the most significant roadblocks to a higher education is the cost, which has risen dramatically over the years. While many people are very familiar with the rising cost of college, they might not realize what an important role hedge funds play in increasing access to higher education. Across our state, university endowments are using returns from hedge fund investments to create scholarships for thousands of aspiring students. 

As the sticker price of college tuition has increased, more and more students are turning to scholarships and financial aid options to achieve their academic dreams. Hedge funds work for the endowments that create these scholarships by maximizing their market portfolios, ultimately passing the returns on to students. Unfortunately, some elected officials and regulators in Washington are targeting hedge funds and, in the process, targeting the opportunities they help provide. If bad public policy makes the working relationship between hedge funds and university endowments disappear, countless students would lose out on a chance to better themselves through higher education. 

I’ve served on the Economic Development Board for Union County , and I’ve also had the honor of serving on Wingate University’s Board of Trustees. My time spent in these position has more than confirmed that higher education is a necessity for positive economic and regional development. This is true on a national level and all the way down to a Union County-level. Colleges and universities across the country, including Wingate University invest a combined $140 billion in hedge funds on behalf of their students. The money Wingate and other colleges invests in hedge funds doesn’t just create scholarships, but it creates opportunity for North Carolina students, families, and communities. 

We can’t let Washington policymakers, some of whom have a fundamental misunderstanding of hedge funds, dictate bad rules and regulations that target hedge funds. Policymakers and regulators need to understand what’s at stake if hedge funds go away: opportunity for thousands of potential students and for North Carolina. 
John Hendley is the president of Brewer-Hendley Oil Company and a member of both the Board of Economic Development for Union County and Wingate University’s Board of Trustees.