Following a high-profile career in finance in which he became one of the first well-known hedge fund managers, Michael Steinhardt began the Taglit Birthright Israel program, a philanthropic enterprise which has provided free 10-day trips to Israel for some 220,000 Jewish youth to learn more about their heritage. Steinhardt spoke with Knowledge at Wharton about how the program helps to improve the country’s image and the challenges of what he calls a deteriorating educational system in Israel — marked by a brain drain in higher education. Steinhardt also discussed the country’s culture of business innovation and how deep democratic roots can sometimes slow progress. An edited transcript of the conversation follows. Knowledge at Wharton: Mr. Steinhardt, thank you so much for joining us today. Michael Steinhardt: My pleasure. Knowledge at Wharton: I’d like to ask a question about something that you wrote in your autobiography, No Bull: My Life In and Out of Markets .…