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Activist Hedge Funds Aren’t Good for Companies or Investors, So Why Do They Exist?

Harvard Business Review

Activist hedge funds have become capital market and financial media darlings. The Economist famously called them “capitalism’s unlikely heroes” in a cover story, and the FT published an article saying we “should welcome” them. before paying the hedge fund 2% per year plus 20% of that 12.4%

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How Banks Can Compete Against an Army of Fintech Startups

Harvard Business Review

Banks’ cost of capital is typically 50 basis points or less. These low-cost and reliable sources of funds are from taxpayer-insured deposits and the Federal Reserve’s discount window.

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Case Study: A Short-Seller Crashes the Party

Harvard Business Review

When the well-known hedge fund manager and short-seller Jeremiah Hughes first put Terranola in the spotlight, issuing ominous warnings about unsold products, a looming patent expiration, and flawed growth projections, the considered judgment of the executive team was to do nothing. “I Doom and Gloom.

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Why Those Guys Won the Economics Nobels

Harvard Business Review

You have to be a macro hedge fund, and not only do you the hedge fund manager have to have nerves of steel, your clients have to have nerves of steel. The capital asset pricing model was supposed to allow companies to calculate their cost of capital in a consistent way. You have to say where it is exactly.

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How Blockchain Is Changing Finance

Harvard Business Review

The New York–based venture capital firm Union Square Ventures (USV) broadened its investment strategy so that it could buy ICOs directly. Menlo Park venture capital firm Andreessen Horowitz joined USV in investing in Polychain Capital , a hedge fund that only buys tokens.