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The benefits of Hedge Funds 
Many Charities are now considering using Hedge Funds intheir portfolios. Used wisely they can have a calming influence, and provide stability. This article from Capital Frontier Management provides an excellent overview for charities considering this issue.
"World Stock markets are proving to be ever more volatile and proper use of these funds in modern portfolio management can now be considered as a key element."
Andrew Cracknell Frontier Capital Management LLP.
Why Invest NOW? 
In conjunction with Christopher Aldous of Pan-Asset Capital Management:
Many charities hold funds on deposit (cash) and perhaps have not formulated a Reserves Policy, this may be due to time pressures or expertise of the trustees - even when there is a Reserves Policy in place the question of whether monies should be invested for the longer term has to be considered. To carry on investing in cash or to switch to active investments to provide higher returns in the long term for the advantage of future beneficiaries has to be considered. CB Financial Ltd can lead charities through this process, so best practice can be achieved in line with Charity Commission thinking. Research has shown many smaller charities do not enter into the process, and monies are left in cash which may not be to the best advantage of all involved.
See full discussion paper for further information.
Why follow the 'Total Investment Return' approach?
The following article by Andrew Pitt who is executive director at UBS and Paul Palmer who is professor of voluntary sector management at Cass Business School discusses the issue.
In 2001 the Charities commission gave the green light to the Total Return Investment approach for portfolio investing - this in effect allowed charities to spend their capital but only in conjunction with an appropriate investment plan. High yield investments tend to be short term investments with limited growth opportunities. The Total Investment Return approach allows for greater investment diversity helping manage risk, delivering an income draw to support the charity and also benefiting possible beneficiaries in the future with a fund that has kept pace with inflation - "the best of both worlds" says James Parker of CB Financial Ltd.
See full discussion paper for further information.
