STOP THE PRESSES!!!  This is a GREAT NY Times story (the cover story in the Sunday Styles section) about hedge fund managers starting and supporting numerous charter schools in NYC.  I'm quoted briefly:

The schools present the kind of opportunity that "electrifies" hedge fund managers, said Mr. Tilson, 43, who is on the board of the Knowledge Is Power Program, which manages charter schools around the country. A founding member of Teach for America in the late 1980s (before earning an M.B.A.), Mr. Tilson also blogs about charters at edreform.blogspot.com. "It's the most important cause in the nation, obviously, and with the state providing so much of the money, outside contributions are insanely well leveraged," he said.

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Scholarly Investments

 

By NANCY HASS

Published: December 4, 2009

www.nytimes.com/2009/12/06/fashion/06charter.html

THEIR company names were conspicuously absent from their nametags, but that is how these hedge fund managers and analysts — members of a field known for secrecy — preferred it. They filled the party space at the W Hotel on Lexington Avenue in late October, mostly men in their 30s. Balancing drinks on easels adorned with students' colorful drawings, they juggled PDA's and business cards, before sitting down to poker tables to raise money for New York City charter schools.

Working the room, the evening's hosts, John Petry and Joel Greenblatt, who are partners in the hedge fund Gotham Capital, had an agenda: to identify new candidates to join their Success Charter Network, a cause they embrace with all the fervor of social reformers.

"He's already in," Mr. Petry said as he passed John Sabat, who manages a hedge fund for one of the industry's big stars. (Like Voldemort in the Harry Potter novels, no one in the group would name him aloud.)

"I wasn't hard to turn," said Mr. Sabat, 36, whom Mr. Petry drafted last year to be a member of the board of Harlem Success Academy 4, on East 120th Street, the latest in its network of school in some of the city's poorest neighborhoods. Boards agree to donate or raise $1.3 million to subsidize their school for the first three years. "You can't talk to Petry without taking about charters," Mr. Sabat added. "You get the religion fast."

Mr. Petry, 38, and Mr. Greenblatt, 52, may spend their days poring over spreadsheets and overseeing trades, but their obsession — one shared with many other hedge funders — is creating charter schools, the tax-funded, independently run schools that they see as an entrepreneurial answer to the nation's education woes. Charters have attracted benefactors from many fields. But it is impossible to ignore that in New York, hedge funds are at the movement's epicenter.

"These guys get it," said Eva S. Moskowitz, a former New York City Council member, whom Mr. Petry and Mr. Greenblatt hired in 2006 to run the Success Charter Network, for which they provide the financial muscle, including compensation for Ms. Moskowitz of $371,000 her first year. "They aren't afraid of competition or upsetting the system. They thrive on that."

Hedge fund managers may be better known for eight-figure incomes with which they scoop up the choicest Manhattan penthouses and Greenwich, Conn., waterfront estates. But they also dominate the boards of many of the city's charters schools and support organizations. They include Whitney Tilson, who runs T2 Partners; David Einhorn of Greenlight Capital; Tony Davis of Anchorage Advisors; and Ravenel Boykin Curry IV of Eagle Capital Management.