By Robert Freeman

Our nation’s economy continues to be turbulent and unpredictable. Many Americans suffer due to skyrocketing costs of consumer goods and struggle to adjust to life under an inflationary economy. The only certainty is uncertainty, and lawmakers should be doing everything in their power to reduce the stress on Americans everywhere, including dedicated workers seeking a stable retirement income, aspiring college students, and nonprofits that support communities both large and small. Members of Congress and Washington regulators must avoid policies that harm everyday Americans and hamper economic opportunity.  

Across the country, universities and retirement plans invest hundreds of billions of dollars in hedge funds, with $23 billion coming from North Carolina. The University of North Carolina and Wake Forest University both operate endowments that rely on hedge fund investments to support a combined total of 250,000 students, keep tuition down, and even provide financial aid in the form of scholarships. The North Carolina Department of State Treasurer invests $3.9 billion in hedge funds on behalf of 1.4 million plan participants, otherwise known as hard-working employees who deserve some financial certainty in their post-working years. The returns on hedge fund investments that support universities and retirement systems are critical to supporting the livelihoods of hundreds of thousands of both everyday North Carolinians and Americans. 

It’s not just universities and retirement plans that invest in hedge funds. Nonprofits and charities, which communities in North Carolina depend on. Organizations such as the Golden LEAF foundation invest $346 million in hedge funds on behalf of rural communities, who are often left by the wayside in economic development initiatives. Other entities such as Novant Health invest $420 million in hedge funds. Nonprofits often run into funding constraints, so the return on investment hedge funds provide is essential in continuing the mission-critical work that North Carolinians depend on. 

I am hopeful about the future, but I am concerned that our nation’s lawmakers do not appear to understand how they can provide financial security here in North Carolina and across the country. Lawmakers should embrace the tools that foster a brighter future in North Carolina instead of putting up more barriers. 

(Robert Freeman is a former Carrabus County Commissioner)