Harvard Business Review

AUGUST 20, 2018

Activist hedge funds have become capital market and financial media darlings. The most comprehensive study of activist hedge fund performance that I have read is by Yvan Allaire at the Institute for Governance of Private and Public Organizations in Montreal, which studies hedge fund campaigns against U.S. akindo/Getty Images.

Hedge 8

Hedge TSR Company Sample 8

Coaching Tip

OCTOBER 18, 2013

Hedge-fund group SAC Capital Advisors LP and federal prosecutors have agreed in principle on a penalty exceeding $1 billion in a potential criminal settlement that would be the largest ever for an insider-trading case, according to people familiar with the matter. Reason Why 2013 Stock Prices are in the Stratosphere.

Hedge 77

Hedge Taylorism Taylor Ethics 77

Harvard Business Review

DECEMBER 13, 2010

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. This time, the charge is rampant insider trading.

Hedge 14

Hedge Ethics Incentives Environment 14

Coaching Tip

AUGUST 7, 2011

Over the last three weeks or so, hedge fund managers have been betting that stocks will fall further. The American consumer confronts a toxic mix of weak home prices and high unemployment. Some large investors, including wealthy individuals who lost big during the 2008 collapse, have more or less been stashing money under the mattress.

Hedge 95

Hedge Wilde Price Follow-up 95

Strategy Driven

NOVEMBER 22, 2022

For example, investors can use physical precious metals as a hedge against currency devaluation or inflation. These assets can also be used as a store of value and a potential hedge against geopolitical risks. They have a higher investment power and are often sold for a small price. Both can be a hedge against inflation.

Hedge 116

Hedge Price Short-term Reputation 116

Mills Scofield

AUGUST 27, 2012

One of his main tasks was to structure a hedging derivative that negated foreign exchange risks so that Microfinance institutions could take safer loans from the developed world. One of the Wall Street guys at dinner, a highly intelligent man with a PhD from Carnegie Mellon was describing his former job to me.

Incentives 171

Incentives Marketing Microfinance Entrepreneur 171

Harvard Business Review

MAY 14, 2013

The Stones have always been aggressive in setting ticket prices, and it appears they''ve pushed too hard this time. In fact, I wrote my PhD dissertation on rock concert ticket prices. The situation faced by the Rolling Stones — sagging sales due to high prices — is one that all companies are susceptible to.

Price 8

Price Discount Brand Merchandising 8

Harvard Business Review

MAY 14, 2015

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. Ban buybacks by U.S

Price 8

Price Franchising Short-term CFO 8

Harvard Business Review

OCTOBER 19, 2012

No wonder companies try to hedge against that possibility with overly broad policies that subject the entirety of an employee's social media presence to the abstract standard of propriety or brand alignment. But that kind of risk management comes at too high a price.

Risk Management 8

Risk Management Media Price Management 8

Harvard Business Review

SEPTEMBER 14, 2017

They work like any other traditional hedging instruments except that the index on which they are settled is a weather index. Our research has focused on how businesses can manage weather-related risks, including estimating potential losses and their probability, and potentially using financial instruments to hedge against that risk.

Hedge 8

Hedge Apparel Risk Management Retail 8

Harvard Business Review

JUNE 13, 2016

Yet the unfortunate side effect of uncompetitive markets is that consumers pay higher prices. Rowe Price, and Wellington are a bit smaller, but they’re still huge. Rowe Price, and Wellington reportedly told Pharma portfolio firms to “defend drug pricing” amid political pressure to do the opposite.

Banking 8

Banking Hedge Asset Management Airlines 8

Harvard Business Review

OCTOBER 19, 2011

Shareholder value, in turn, is typically measure by share price — meaning share price today, not share price next week or next decade. The problem is, the only information these investors see is share price, so that's the only thing they focus. This powerful minority is activist hedge funds. Compensation.

Long-term 10

Long-term Hedge Strategy Short-term 10

Harvard Business Review

MARCH 11, 2015

” 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

Hedge Company Automotive Restructuring 8

Harvard Business Review

MARCH 1, 2018

shale oil and gas producers have been ramping up production to take advantage of rising crude oil prices — prices that had been rising in the wake of a deal between the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other non-OPEC producers to reduce oil output. The soaring U.S.

Offshoring 10

Offshoring Price Transportation Long-term 10

Harvard Business Review

NOVEMBER 21, 2011

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 14

Retail P&L Merchandising Hedge 14

The Horizons Tracker

NOVEMBER 6, 2022

While larger companies may be able to hedge the costs associated with key inputs and smooth out any cyclical costs, smaller businesses may struggle to achieve this. Price increases ripple through the supply chain – It’s almost inevitable that consumers will push back and demand will fall at some point.

Supply Chain 93

Supply Chain Charan Short-term Long-term 93

Harvard Business Review

JUNE 30, 2017

producers to lower their prices in foreign markets, raising demand for U.S. No matter when a new trade agreement is signed, and currency effects start to kick in, those suppliers could adjust their prices only after the contracts expire. Options and hedges. Any export subsidy would allow U.S. Three Types of Action to Consider.

Supply Chain 9

Supply Chain Hedge Automotive Uncertainty 9

Harvard Business Review

OCTOBER 9, 2015

” On the other side, noted economist and hedge fund adviser Larry Summers cautions that reforming “quarterly capitalism” would risk driving us toward “Japan’s keiretsu system, which insulated corporate management from share price pressure by tying large companies together.” A Big Red Herring.

Hedge 8

Hedge Short-term Long-term EPS 8

Harvard Business Review

JULY 18, 2017

Take a company that is thinking about cutting investment to boost earnings, hoping to inflate its stock price. She would sell her shares, pushing the stock price down. However, a decade of research finds that hedge fund activism raises firm value by 7%, with no long-term reversal. What about innovation?

Short-term 8

Short-term Intangible Assets Hedge Long-term 8

Harvard Business Review

NOVEMBER 17, 2016

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. ” Some of that profit is the result of innovative pricing models. Warren Buffett got burned with an airline investment in the 1990s.

Airlines 8

Airlines Price Hedge Industry 8

Harvard Business Review

OCTOBER 3, 2011

Many companies face quarterly or even more immediate pressure from their shareholders (increasingly made up of hedge funds, program traders, and day traders) to deliver short-term performance. At present, shareholder value (per share) is assumed to be best represented by the current share price.

Long-term 14

Long-term Company Short-term Hedge 14

Harvard Business Review

AUGUST 12, 2013

Everybody has been piling on to hedge fund manager Bill Ackman lately. Ackman''s short-selling campaign against vitamin distributor Herbalife has blown up in his face, with the company''s stock up more than 75% since he unveiled his position last December and some of his most prominent hedge fund competitors profiting from his misery.

Hedge 8

Hedge Short-term Long-term Finance 8

Harvard Business Review

APRIL 2, 2013

Rawley explains in this Columbia Ideas at Work piece: “If you’re coming from a New York bank and starting up a new hedge fund, even if you are well connected in New York, you’re competing with people who are also well connected. There are a lot of hedge funds chasing dollars in New York, but very few in Missouri.”. Moral of the story?

Hedge 8

Hedge Meyer Merchandising Price 8

Harvard Business Review

OCTOBER 16, 2014

9, armed with about 1% of Apple’s outstanding stock, the hedge-fund activist published an open letter to Apple CEO Tim Cook, urging him to accelerate the company’s stock repurchases by making a tender offer. Another hedge-fund activist, David Einhorn, was then playing that role). Carl Icahn is at it again.

Safe Harbor 9

Safe Harbor Hedge EPS Price 9

Harvard Business Review

JULY 22, 2013

Kocieniewski describes forklift drivers moving aluminum from warehouse to warehouse in Detroit to profit from rules set by an overseas metals exchange, while delivery times to actual users of aluminum have stretched to 16 months and aluminum prices have been pushed up by the equivalent of a tenth of a U.S. cent per aluminum can.

Cost 8

Cost Fraser Hedge Price 8

Harvard Business Review

SEPTEMBER 7, 2016

After one hedge fund I know had a horrendous quarter, the managers wrote to clients, saying that they were concentrating 70% of the entire fund into only five stocks. After one hedge fund I know had a horrendous quarter, the managers wrote to clients, saying that they were concentrating 70% of the entire fund into only five stocks.

Hedge 8

Hedge Real Estate Marketing Advertising 8

Harvard Business Review

JULY 26, 2013

Five years after a financial crisis that, as best anybody can tell, had almost nothing to do with insider trading by hedge funds, the two biggest post-crisis criminal crackdowns on the financial sector in the U.S. insider trading by hedge funds. have centered on. Bharara has not filed charges (yet?)

Hedge 8

Hedge Handbook Crisis Price 8

Harvard Business Review

SEPTEMBER 22, 2014

As a hedge fund manager who applied data-driven trading strategies once said, “You can spend endless time and resources only to find eventually a bug in your data.”. In a recent study of the daily close prices of S&P500 stocks, we “discovered” what looked like striking patterns in stock movements.

Credit Scoring 10

Credit Scoring Price Market Segmentation How To 10

Harvard Business Review

AUGUST 4, 2015

But after telling me the sale price, he went into a carefully structured description of how that $31 million was going to be split up. But of course, it’s not just hedge fund managers. He was calling to get my consent to sell the company for $31 million.

Hedge 8

Hedge Bond CEO Talent Management 8

Harvard Business Review

JUNE 9, 2011

Jarrow, Kchia, and Potter then plugged in LinkedIn's minute-by-minute stock price movements during its first week of trading. As best I can tell, there are three levels of bubble danger (they correlate somewhat with Hyman Minsky's three stages of economic danger: Ponzi, speculative, and hedge finance). The Ponzi bubble.

Company 13

Company Finance Price IPO 13

Strategy Driven

JANUARY 20, 2022

It is difficult to put a price tag on your overall peace of mind; however, you do need to think about your risk tolerance. Make sure you diversify your assets so you hedge your risk accordingly. Are you someone who is going to compulsively check the market every day because you are afraid your investments may drop by 0.5

How To 86

How To Hedge Bond Marketing 86

Harvard Business Review

OCTOBER 27, 2014

W]e seek to find undervalued companies in the Graham & Dodd tradition, a methodology for valuing stocks that primarily looks for deeply depressed prices.” After using borrowed money in the 1980s and 1990s, then opening up a hedge fund in 2004, he has since 2011 basically just been managing his own money. Why’s that?

Hedge 8

Hedge Venture Capitalist Letter Reputation 8

Harvard Business Review

AUGUST 26, 2015

Consider “Chainsaw Al” Dunlap, infamous for his profit-at-any-price approach to corporate turnarounds. When Paul Polman became the CEO of Unilever, for example, he stopped giving analysts earnings guidance, dispensed with quarterly profit reports, and said there’d be no special treatment for hedge funds.

Metrics 8

Metrics Long-term Short-term Hedge 8

Harvard Business Review

MAY 20, 2011

To illustrate why I ask, consider this set of questions: How's your house price doing? How are weekly grocery and gas prices doing? Where are commodity prices — not to mention gold — headed? Commodities prices are spiking because China's chasing opulence like Charlie Sheen chases ladies of the night.

GDP 18

GDP Price Hedge Banking 18

Harvard Business Review

OCTOBER 15, 2014

Efficient markets, which feature many buyers and sellers and perfect information flowing between them, determine the “right price” and hence allocate society’s resources optimally. The shadow of an efficient market is increased price volatility — quite the opposite of what we expect from efficient markets.

Efficiency 8

Efficiency Marketing Real Estate Price 8

Harvard Business Review

MARCH 8, 2016

Escalating wealth driven by a bull market cannot be divorced from the atrophying of the middle class when stock repurchases and cash reserves nudge earnings per share and stock prices higher but do nothing to create employment or increase national productivity. -based companies using questionable corporate practices that are entirely legal.

Politics 8

Politics Short-term Long-term Porter 8

Harvard Business Review

MAY 30, 2013

What''s more, the asset management industry — in particular the alternative-asset subset of hedge funds and private equity — has exported many of its pay practices into the corporate sector. As Roger Martin argued in his book Fixing the Game , stock prices are all about (often incorrect) expectations of future earnings.

Hedge 8

Hedge Asset Management Incentives Outsourcing 8