Are hedge funds' charitable donations strategic?

We study whether hedge funds make charitable donations to further their business interests. find that are driven by poor fund flows and performance. Post-donation, donor experience lower outflows compared matched non-donors. One-off charities which hold fundraising events catering the community more likely mitigate after These findings consistent with strategic motivations driving at least some donations. While economics of initially appear quite favorable funds, benefits from not scalable. Moreover, investors punish donors through greater redemptions if performance persists post-donation.