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How Hedge Funds Create Criminals

Harvard Business Review

Hedge funds are playing the role of Wall Street villain again. Then came the November 22, 2010 raids of three hedge fund headquarters by FBI agents who seized documents and confiscated BlackBerries. Now authorities are serving subpoenas on other, larger hedge and mutual funds. Killing Conscience.

Hedge 14
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McDonald’s Has to Do More than Manipulate Its Stock Price

Harvard Business Review

The “turnaround plan” recently announced by McDonald’s includes an aggressive program to manipulatively boost its stock price via stock buybacks, an activity that has become the major focus of its corporate strategy over the past decade. ” In 2014, McDonald’s expended $3.2 The winners.

Price 8
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How Retailers Can Appeal to Lower-Income Shoppers

Harvard Business Review

Gas prices have risen 90% from 2008 to 2010, leaving consumers with $160 billion less spending money per year. Many retailers are responding with across-the-board price promotion strategies. This is problematic, because not all shoppers are equally price sensitive across all categories. Unemployment remains high.

Retail 15
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GM’s Stock Buyback Is Bad for America and the Company

Harvard Business Review

” But the only real wins are a victory for the hedge funds, and a Pyrrhic victory for GM in that it managed to keep Wilson off its board and reduced the size of the buyback from the $8 billion the investors had been demanding. During the bailout, financial firms, including hedge funds, were nowhere to be found. Instead, U.S.

Hedge 8
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Warren Buffett Is Betting the Airline Oligopoly Is Here to Stay

Harvard Business Review

He blamed the industry’s notorious low profitability on the “kamikaze pricing tactics of certain carriers” and vowed to not invest in this “death trap” sector again. Industry observers have noted that since 2010, “The airline industry is profitable again — really profitable.”

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Could a Four-Year-Old Do What Carl Icahn Does?

Harvard Business Review

In 2010 it was $900 million — seventh place. W]e seek to find undervalued companies in the Graham & Dodd tradition, a methodology for valuing stocks that primarily looks for deeply depressed prices.” He just argues that the CEOs and boards are for various reasons unwilling to take basic, obvious steps to raise share prices.

Hedge 8
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The Internet Shouldn’t Run on Dirty Energy

Harvard Business Review

In 2010, data centers represented 2% of all electricity use in the United States. Clean energy can provide a hedge against rising and more volatile electricity prices. Furthermore, volatility in electricity price — and possibly even reliability — is rising.

Energy 8