Nobel Foundation turns to hedge funds to restore prize money The Nobel Foundation, grappling with a 20pc depletion of assets, has said it is turning to hedge funds for help. Lars Heikensten, head of the Stockholm-based foundation, said he wants the high-rolling financiers to help restore the prize money which was cut by 20pc this year. "If we can choose hedge funds that we trust, then we can get better returns for given risks," he told Bloomberg. The foundation, which was established for prizes in physics, chemistry, medicine, peace and literature, started with 31m Kroner - around £1bn in today's money. The foundation allowed riskier investments in the 1950s after being hit by two World Wars. But at the end of 2011, it funds had slumped 18pc from 2007 to 2.7bn kroner (£280m), triggering a cut in prize money from 8m Kroner to 10m Kroner. Mr Heikensten said it's "definitely not a crisis" but said "it's better to start doing something in good time."