APRIL 7, 2021 • VOLUME 91 • ISSUE 18
The official student newspaper of Quinnipiac University since 1929
MORGAN TENCZA/CHRONICLE (2019)
Female athletes deserve equality p. 10-11
PHOTO CONTRIBUTED BY KARENNA DOWNS
NEWS P.2: VACCINE VOCALIZATION Quinnipiac students react to being able to receive the COVID-19 vaccine in Connecticut
ILLUSTRATION BY CONNOR LAWLESS
OPINION P.4: REOPENING DEBATE Two writers share their differing opinions on how states should loosen COVID-19 restrictions
EMILY DISALVO/CHRONICLE
A&L P.7: OVERNIGHT OATS
This breakfast is simple, delicious and makes starting the day easier
Quinnipiac invests millions in hedge funds
By STEPHEN MACLEOD Staff Writer
Quinnipiac University had over $39 million in hedge fund investments in 2018, according to its annual 990 filing. Two of the investments are in companies based in the Cayman Islands, a place hedge funds commonly claim to be based to avoid taxes in a legal way. Over 60% of the United States’ hedge funds are based in the British overseas territory. Hundreds of U.S. colleges and universities were found to have held investments in the Cayman Islands in the Paradise Papers as a way to avoid taxes on investments. While most private colleges are non-profits, the investments they make are taxable. “The only time university endowments pay taxes is when they invest in debt-financed financial firms such as private equity funds and hedge funds,” Sasha Chavkin, Emilia Díaz-Struck and Cecile L. Gallego wrote in a 2017 International Consortium of Investigative Journalists article. “These investments are considered a business activity unrelated to their tax-exempt missions.” Quinnipiac’s portfolio puts 6.7% into hedge funds. Most of its other disclosed investments are in private equity firms. Universities make investments in order to grow their endowment and generate capital. One of the hedge funds Quinnipiac dis-
closed, Ironwood International, is based in the Ugland House, which is a small two-story building that houses a law firm and 40,000 business entities. Quinnipiac had $9 million in Ironwood in 2018. Ironwood operates out of Chattanooga, Tennessee, and its holdings are not public. Another one of the funds Quinnipiac invested in is the Monarch Opportunity Fund, which is supported by Monarch Alternative Capital. Based in New York City, Monarch holds millions of dollars worth of stock in the fossil fuel industry. Quinnipiac had $13 million in Monarch in 2018. Quinnipiac’s money may not directly be in fossil fuels through the Opportunity Fund, but hedge funds use pooled or borrowed resources to make aggressive trades. In 2018, Monarch had $70 million in Resolute Energy, an oil and gas producer that was bought by a larger producer in 2019. It also held $122 million in Arch Coal, a coal miner and producer. Today, Monarch holds $14 million in Oil States International, an American multi-national corporation that specializes in drilling for gas and oil, according to its most recent SEC filings. It also holds another $9 million in Pacific Gas and Electric Company (PG&E), a West Coast See HEDGE FUNDS Page 3
ILLUSTRATION BY CONNOR LAWLESS