Why an Activist Hedge Fund Cares Whether Apple’s Devices Are Bad for Kids

Harvard Business

On January 6, 2017, JANA Partners , a New York–based activist hedge fund, and the California State Teachers’ Retirement System (CalSTRS) sent a letter to Apple’s board of directors that may change the future of activist investing. The term “activist hedge fund” connotes to many a “corporate raider” who creates short-term profits at the expense of other stakeholders and long-term investors. Tim Ellis/Getty Images.

Hedge 30

Startups Could Fundamentally Change the Way Big Investors Operate

Harvard Business

Small startup firms are already developing proprietary technologies — such as machine vision, deep learning, and other innovations —– that could help large investors evaluate opportunities and risks with far greater accuracy and efficiency than was previously possible. This disconnect is a major problem for the continuing development of efficient capital markets. Innovation has the potential to transform the investment industry.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

What If Google Had a Hedge Fund?

Harvard Business Review

Acutely aware of the competitive edges timely data offers sophisticated investors, the company's ever-entrepreneurial cofounder once proposed that Google launch a hedge fund. Google may not have a hedge fund, but it's unlikely that high IQ hedge funds aren't using Google's data to better manage their own situational awareness and risk. What kind of hedge funds might an Amazon set up (remember, Jeff Bezos actually came from a New York hedge fund)?

Hedge 12

Want Better Influence at Work? Avoid These Communication Mistakes

Let's Grow Leaders

Back in my early HR days at Verizon, I (Karin) was really excited about a new mentoring program we had developed, but I had to convince the operations leadership that the time was right. Hedging. 3 Communication Mistakes That Sabotage Your Influence and Impact.

The Key to Adaptable Companies Is Relentlessly Developing People

Harvard Business

But it turns out there are very few that are great and relentless at people development. When it comes to preparing organizations for a complex, high-speed future, many people who work in those organizations, or in management science, talk about the imperative for “ continuous improvement ” in operations. What is unique about these companies is that they have built their cultures to support the development of all of their people, every day.

Hedge 35

How Big Companies Can (and do) Innovate Like a Start-Up

Leading Blog

Re-creating these mindsets inside an established company is challenging because they result partly from the unique pressures and circumstances under which start-ups operate. The best strategy when facing high degrees of uncertainty is to hedge and build options for the future.”. Pisano says to find, develop and retain the synthesizers in your organization.

Learn or Die

Leading Blog

Our ability (and willingness) to learn impacts our personal and business growth, operational excellence, and our capacity to innovate. A particularly fascinating and eye-opening chapter is on Ray Dalio’s Bridgewater Associates, the largest hedge fund in the world. This book will show you how. * * * Like us on Facebook for additional leadership and personal development ideas.

Hedge 239

Post-Covid Work Trends and the Future of Work

HR Digest

The greatest change seen is in remote work operations. Reason being an ability to hedge their bets and get a foothold in diverse markets and manage risks better. But the organizational expansion is bound to create challenges of operation and management and higher leadership skills. .

Bad Data Costs the U.S. $3 Trillion Per Year

Harvard Business

Leaders are well-advised to develop a deeper appreciation for the opportunities improving data quality present and take fuller advantage than they do today. ” Senior executives hedge their plans because they don’t trust the numbers from finance. 75% — an estimate of the fraction of total cost associated with hidden data factories in simple operations, based on two simple tools, the so-called Friday Afternoon Measurement and the “rule-of ten.”

Hedge 31

Understanding Private Equity: What You Need to Know

Strategy Driven

It primarily involves investing in mutual funds and hedge funds, which offer the opportunity to invest where you may not be able to meet the minimum capital alone. If you are looking for an alternative investment method, you might want to consider Private Equity investment.

Keep On Truckin’? The Future Of The Haulage Industry

Strategy Driven

Because so many of the modern approaches to the any industry is hedging its bets on automation, and with the advent of driverless trucks on the horizon, the average truck driver is, naturally, very concerned about their earning potential. But, the overarching ideal with driverless trucks is that it’s not meant to put people out of jobs, but rather make those that already work in the industry operate far safer.

Severe Weather Threatens Businesses. It’s Time to Measure and Disclose the Risks

Harvard Business

Research shows that abnormal weather disrupts the operating and financial performance of 70% of businesses worldwide. And yet, this aggregate number adds up positive and negative weather impacts, and masks the true extent to which abnormal weather harms individual businesses operating in utilities, retail, food processing, transportation, and construction, among other industries. Photo by Annie Spratt.

Hedge 28

The #1 Office Perk? Natural Light

Harvard Business

Research by Cornell University Professor Dr. Alan Hedge reinforces the connection of natural light and employee wellbeing. Dr. Hedge’s recent research study found optimization of natural light in an office significantly improves health and wellness among workers. Airbnb has pushed the limits of designing its customer call center operation in Portland, Oregon. Wong/Unsplash.

Is Your Supply Chain Ready for a NAFTA Overhaul?

Harvard Business

For example, California-based berry producer Driscoll’s has invested extensively in Mexican berry operations because of the year-round availability of high-quality fruit, lower labor costs, and local know-how. Companies that develop a strategy for these uncertainties will be able to pivot faster than the competition when details about a new trade agreement become clear. Options and hedges. One option today is automating operations to some degree.

Great Leaders Make Decisions | N2Growth Blog

N2Growth Blog

It was Andy Grove the former Chairman and CEO of Intel and Time Magazine’s 1997 Man of the Year who said “You have to take action; you can’t hesitate or hedge your bets. A critical part of the talent management life-cycle is leadership development. If your mentoring and training programs don’t focus on the development of action oriented leaders then you are simply breeding obselesence, and utlimately…failure.

Blog 257

Uber Is Finally Realizing HR Isn’t Just for Recruiting

Harvard Business

But with the departures of a number of high-level HR leaders in late 2016, head of operations Ryan Graves largely took on the head HR role in addition to his other duties. All of this indicates that Uber leaders prioritized immediately useful services like recruitment over, for example, legal compliance systems, audits, and leadership development. That is like setting up a finance organization to do exotic risk hedging before putting in place basic reporting and compliance.

Oil’s Boom-and-Bust Cycle May Be Over. Here’s Why

Harvard Business

Unlike national oil companies and oil majors that typically take five to 10 years to develop conventional oil reserves, these independent and “unconventional” players have improved their drilling and fracturing technology to the point where they can respond within months to temporary spikes or dips in the market. output comes from fracking operations that have cut costs dramatically since slumping prices in 2014 forced dozens of companies into bankruptcy.

A 6-Part Tool for Ranking and Assessing Risks

Harvard Business

Developed during World War II, CARVER (then one letter shorter and known as CARVE) was originally used by analysts to determine where bomber pilots could most effectively drop their munitions on enemy targets. Beginning with Criticality, they might ask, “How critical is the oil pipeline in Abuja, Nigeria, to the company’s overall operations?” The CSO would rank Criticality like this: 5 – Loss of the pipeline would stop operations.

SWOT 33

Michael Fraccaro, CHRO at Mastercard, on the value of business resource groups

HR Digest

I was at a conference recently and one of the speakers remarked that “Culture hedges against the risk of uncertainty.” That requires us to invest in developing both current and future skills. We partner with universities to develop curriculum for students and learning programs for our employees in “hot skill” areas like cybersecurity and AI. Louis to develop a customized, cyber skills program for employees.

Hedge 28

Why Consensus Kills Team Building | N2Growth Blog

N2Growth Blog

Team building, group dynamics, talent management, leadership development, and any number of other functional areas are much more about clarity, focus, aligning expectations, and defining roles than creating equality. Decisioning by consensus usually results in no decision being made, or an intellectually dishonest, watered-down decision that is so full of compromises, hedges and caveats that a non-decision might have been preferable.

Designing the Machines That Will Design Strategy

Harvard Business

It’s not implausible to imagine that one day a “strategist in a box” could autonomously develop and execute a business strategy. LTCM’s model continued to predict that it was properly hedged against a potential Russian default; the insight that it actually needed — that it was under-hedged and exposed to liquidity risk — could only have come from outside of the model. kenneth andersson FOR HBR.

Why the U.S. Needs More Worker-Owned Companies

Harvard Business

The social impact funds want to support it for social reasons, whereas hedge funds and others are recognizing that the superior resiliency and performance of worker-owned firms can improve their returns. And companion bills developed to enable the U.S. On their own merits, worker-owned businesses can show policy makers, investors, managers, and advisers that companies with democratic ownership values and structures are operated with the same profit motivation as other companies.

ESOP 34

How to Actually Put Your Data Analysis to Good Use

Harvard Business

The competition for talent will be especially intense for companies for whom advanced analytics forms a core part of their proposition — think e-commerce giants, hedge funds and complex system engineers. What they do need are analyses that solve key commercial and operational problems. What’s missing, more often than not, is a clear strategy and operational model for using these capabilities in ways that are specific to the company’s business requirements.

How B2B Software Vendors Can Help Their Customers Benchmark

Harvard Business

Those analyses rely on publicly available data sources, but software providers have accumulated growing amounts of private data on almost every aspect of their customers’ technology, operations, people, and strategies. Active investors such as hedge funds seek to outperform the market and index providers. Imagine if all manufacturers had, for example, a supply chain efficiency score, or all companies had a leadership development score. Gillian Blease/Getty Images.

7 Skills That Aren’t About to Be Automated

Harvard Business

Today’s young professionals grew up in an age of mind-boggling technological change, seeing the growth of the internet, the invention of the smartphone, and the development of machine-learning systems. For example, the original Google car found it hard to compute the context within which it was operating. In commercial organizations, though, where teaching requires understanding the context of a person’s development within the organization, managers and coaches shine.

Does Your Startup Have a Spending Strategy?

Harvard Business

These spending choices require tradeoffs, so entrepreneurs must first develop a strategy for allocating limited resources across a wide range of available options. After managing a sleeve of a successful hedge fund in London for five years, and building ample savings, Colin was ready for his own shop. They were both naïve to think that creating a high-expense, polished operation would automatically enhance their business. Catherine Ledner/Getty Images.

Hedge 35

If Ford Wants to Beat Tesla, It Needs to Go All In

Harvard Business

” [Ford Smart Mobility’s] role is to design, develop, build, invest, and grow these mobility services. The reason we wanted to do it separate is because, you have to realize that we needed to give them the flexibility and the operating structure to be able to be competitive with other technology and mobility services companies that move really fast. They can’t hedge, like Ford is doing.

Robo-Advisers Are Coming to Consulting and Corporate Strategy

Harvard Business

Companies are both operators and investors. Companies in every industry can benefit from making more data and algorithm-based decisions in areas of internal operations and finance. Create your own internal robo-advisory service : Companies could develop their own robotic or semi-robotic advice for key decision domains. Shift to providing advice on business models, not just strategy and operations. CSA Images/Printstock Collection/Getty Images.

Public Pension Funds Perform Better When They Keep Politics at Bay

Harvard Business

Interference by elected officials — from imposition of local economic development obligations to excessive constraints on head count and compensation that impede recruitment of talented staff — has contributed to poor investment choices, higher total costs, diminished organizations, and disappointing performance at some institutions. Many have developed finely tuned political antennae so they can identify and defuse potential threats to their cherished autonomy early on.

Hedge 28

4 Ways CEOs Can Conquer Short-Termism

Harvard Business

Great stories are credible, simple, consistent, and use both financial and nonfinancial metrics to link a long-term vision and firm values with a distinctive business strategy and focused operational priorities. They operated with a both/and mindset, seeking to deliver on immediate goals in a way that also built a sustainable future. ” These four practices operate together as a system.

EPS 30

How to Get People to Collaborate When You Don’t Control Their Salary

Harvard Business

” People in industries as different as commercial real estate, pharma, biotech startups, hedge funds, and public school districts worried about how to transform a competitive, star-driven culture into a collaborative one when they had no power to juggle financial rewards and no influence over promotion decisions. Most of us assume that if we want to change people’s behavior, we need to change their incentives.

Bill Ackman Is Just Doing God's Work

Harvard Business Review

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. That''s what activist hedge fund managers like Ackman do. Hedge funds are often criticized as short-term speculators.

What Great Data Analysts Do — and Why Every Organization Needs Them

Harvard Business

Instead of asking an analyst to develop their statistics or machine learning skills, consider encouraging them to seek the heights of their own discipline first. But in more sophisticated data operations, data-driven inspiration gets flagged for proper statistical follow-up. To this end, one way to spot a good analyst is that they use softened, hedging language. Vicki Jauron, Babylon and Beyond Photography/Getty Images.

How Banks Can Compete Against an Army of Fintech Startups

Harvard Business

By comparison, online lenders face capital costs that can be higher than 10%, sourced from potentially fickle institutional investors like hedge funds. The choice of strategy depends on how much investment of time and money the bank is willing to make to enter the new marketplace, and the level of integration the bank wants between the new digital activities and their traditional operations.

How Blockchain Is Changing Finance

Harvard Business

Blockchain was originally developed as the technology behind cryptocurrencies like Bitcoin. After all, most financial intermediaries themselves rely on a dizzying, complex, and costly array of intermediaries to run their own operations. This industry supports a number of intermediaries, such as investment bankers, exchange operators, auditors, lawyers, and crowd-funding platforms (such as Kickstarter and Indiegogo).

Why Apple’s New HQ Is Nothing Like the Rest of Silicon Valley

Harvard Business

To set this in context, it’s important to first understand the fundamental challenge of building contemporary (and future) workspaces, especially for technology companies: Software and buildings operate on entirely different timescales. New young tech companies — Airbnb, Twitter, Instagram, Snap, and WeWork, among others — operate differently than Silicon Valley giants. Understandably, they want to hedge against unpredictability and rapid change.

What Initial Coin Offerings Are, and Why VC Firms Care

Harvard Business

What traditional investors don’t like about any of this is the regulatory uncertainty; the high valuations and over-capitalization; the lack of control over financials, strategy, and operations; and the lack of business use-cases. Non-profits usually hold about 10-20% of the total cryptocurrency they issue; as Ethereum did in their ICO in 2014, with 20% going to the development fund and the remaining going to the Ethereum Foundation.

Great Innovators Create the Future, Manage the Present, and Selectively Forget the Past

Harvard Business Review

It both funds day-to-day operations and generates profits for the future. To deal with this problem, over the course of thirty-five years of working with and doing research in corporations around the world, I have developed a simple, practical framework that recognizes all three competing challenges managers face when leading innovation. That is why organizations must develop the Box 2 capacity to overcome the influence of the past, to divest one identity in favor of another.

Hedge 10

Here Are All the Reasons It’s a Bad Idea to Let a Few Tech Companies Monopolize Our Data

Harvard Business

Facebook, at that time, allowed app developers to collect this personal data. ” By that I mean companies that control a key platform which, like a coral reef, attracts to its ecosystem users, sellers, advertisers, software developers, apps, and accessory makers. The Commission also preliminarily found Google to have abused its dominant position with both its Android mobile operating system and with AdSense. James Graham/Getty Images.

Clinton’s Proposals on Stock Buybacks Don’t Go Far Enough

Harvard Business Review

But that will not in any way deter hedge-fund activists from demanding that companies do stock buybacks so that they can time their stock sales to take advantage of short-term, buyback-induced, stock-price boosts. This “limit” is another license to manipulate the stock market for the benefit of company executives and hedge-fund managers. They — and not parasitic hedge-fund managers like Carl Icahn — are the value creators. HBR STAFF.

The IT Project That Brought a Bank to Its Knees

Harvard Business Review

s Co-operative Bank in June 2013. This shortfall resulted in its parent, Co-operative Group, ceding control of the bank to bondholders, including U.S. hedge funds. We have developed a simple yet powerful framework that leadership teams can use to navigate the digital landscape and avoid the kinds of problems that Co-operative Bank suffered. This is clearly where the Co-operative Bank’s program floundered.

CIO 8

The Internet Shouldn’t Run on Dirty Energy

Harvard Business Review

Clean energy can provide a hedge against rising and more volatile electricity prices. In a recent, high-profile example, HP announced in July that it will power all of its Texas data centers with wind energy for 12 years while lowering its operating costs. There are clear signs of a potential shift in energy sourcing and consumption—and managers of IT and services operating in the cloud should start paying attention to how they can contribute.

The Future of Cities Depends on Innovative Financing

Harvard Business Review

They are developing horizontally, not vertically, with vast areas of low sprawl reaching out for miles from Sao Paolo, Lagos, New Delhi, Guangzhou, Jakarta, and many others. As I travel to urban development conferences, I often hear people bemoan an infrastructure funding gap, but the hard truth is there is no funding gap. Investors from hedge funds to insurance companies are operating in an environment of low yields, near-zero interest rates, and a glut of savings.