Harvard Business Review

OCTOBER 11, 2017

Our data shows, for instance, that 18% of multimillionaires work in finance, while only 1% of them are professors and scientists. Although few in number, these scientists are extremely productive, generating much of the total social spillovers from research.

Policies 8

Policies Career Hedge Human Capital 8

Harvard Business Review

SEPTEMBER 27, 2013

In 2007, Clayton Christensen co-founded Rose Park Advisors, a hedge fund devoted to investing in disruptive companies. Disruption theory reveals four innovation types that could shape an investment thesis: Low-end disruptive – a dramatically cheaper way of producing worse products for customers who are over-served by existing options.

Innovation 8

Innovation Marketing Disruptive Innovation Discounted Cash Flow 8

Harvard Business Review

FEBRUARY 1, 2017

Here are three things that Western investors should want from African entrepreneurs: a focus on the top of the pyramid, control over factors of production, and innovation in distribution rather than in products. Factors of Production. Today his Nice Rice Mill processes 70% of the region’s rice production.

Microfinance 8

Microfinance Hotels Entrepreneur Incubator 8

Harvard Business Review

OCTOBER 14, 2013

I think he got the Nobel nod (instead of somebody like Andy Lo , or Mordechai Kurz , or Roman Frydman ) because he was (1) very early to the game, (2) a macroeconomist (the Nobel people generally seem more comfortable with macro than with finance), and (3) most suited to being shoehorned into a narrative of steady scientific progress.

CAPM 8

CAPM Finance Price Uncertainty 8

Harvard Business Review

APRIL 18, 2016

LTCM was founded, in 1994, by some of the best minds in finance theory, including two Nobel Prize winners. When electricity initially replaced the steam engine, engineers just placed electric motors where the steam engine used to be — with limited productivity gains. Nevertheless, overreliance on models was its downfall.

Strategy 8

Strategy Supply Chain Technology Engineering 8

Harvard Business Review

JULY 5, 2018

Unlike a pure holding company or a modern hedge fund, the GE model intended to create value by actively sharing capabilities among its disparate businesses, which, with one important exception, were all rooted in manufacturing. But the GE model is dead — and there’s a long list of possible suspects.

Welch 8

Welch Software Industry Hedge 8

Harvard Business Review

OCTOBER 15, 2014

They are simply trading based on their beliefs about the future value to hypothetical future users of the product in question. They are the product of human imagination, which is ruled alternatively by fear and euphoria. It has spurred the growth of an entire industry that exists only to exploit volatility: the hedge fund business.

Efficiency 8

Efficiency Marketing Real Estate Price 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. For corporations to make the required long-term investments in production, marketing, etc.,

Long-term 14

Long-term Company Short-term Hedge 14

Harvard Business Review

NOVEMBER 9, 2012

When last year's massive earthquake hit Japan, the effect on electronics production was severe, and it also resulted in extended business disruptions for many in the automotive industry. This is a concept fundamental to finance but that, for some reason, has not migrated into supply chain risk management.

Supply Chain 8

Supply Chain Chief Procurement Officer Risk Management Management 8

Harvard Business Review

DECEMBER 17, 2013

Perhaps most damning to entrepreneurs, inclined to pride themselves on what they produce, is the charge that many of the products Silicon Valley has been churning out are trivial. By this logic, there’s no reason to applaud the growing number of graduates from top universities opting for jobs in startups and tech rather than finance.

Venture Funding 8

Venture Funding Entrepreneur CRM Hedge 8

Harvard Business Review

APRIL 26, 2017

Recent analysis by Bain and SAP found that only 7% of bank credit products could be handled digitally from end to end. By comparison, online lenders face capital costs that can be higher than 10%, sourced from potentially fickle institutional investors like hedge funds. Other sectors of retail lending have not fared much better.

Banking 12

Banking Stage-Gate Credit Scoring Competitive Advantage 12

Harvard Business Review

JANUARY 30, 2014

Shiller and his allies posit that this excess volatility is the product of investor error, herd behavior, feedback loops and the like. (My Fama and his allies say nobody knows if the volatility is “excess,” and describe it as the product of something they call “time-varying expected returns.” Apple Disruptive innovation Finance'

Price 8

Price Disruptive Innovation Uncertainty Marketing 8

Harvard Business Review

SEPTEMBER 16, 2014

Or you could participate in projects financed in part by conventional investors and in part by non-profits. Abigail Noble: The other thing that we’re seeing is from the customer side — that they want things that have social impact and environmental responsibility and products that serve those needs. They trust the governance.

Insurance 9

Insurance Bond Hedge Bottom-up 9

Harvard Business Review

APRIL 3, 2014

There’s a wonderful scene (one of many) in Michael Lewis’s new book, Flash Boys: A Wall Street Revolt , in which John Schwall, then the head of product management at RBC Capital Markets in New York, decides one day in 2011 to figure out how stock trading had evolved into a high-speed, unfair race he thought it had become.

Long-term 8

Long-term Open-book Marketing Hedge 8

Harvard Business Review

FEBRUARY 5, 2014

But he also bragged about increased production of natural gas and oil. Bloomberg New Energy Finance has estimated that between now and 2030, around 70% of the power generation the world will add will be renewables. Very few politicians will take on those powerful lobbies, so a price on carbon is likely a fantasy in the U.S.

NGO 9

NGO Energy Morale Price 9

Harvard Business Review

JANUARY 12, 2018

This data is both financial (revenues, profits, growth) and non-financial (customer sentiment, employee engagement, marketing effectiveness, product feedback, and partner ecosystems). Companies in every industry can benefit from making more data and algorithm-based decisions in areas of internal operations and finance. ZB by 2020.

Consultative 8

Consultative Strategy Advice McKinsey 8

Harvard Business Review

OCTOBER 11, 2013

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 Investors adored the Terranola story.

Case Study 8

Case Study CFO Hedge PR 8

Harvard Business Review

JULY 12, 2016

Ask someone to name the demands that activist hedge funds make of companies and they’ll likely list corporate governance issues like board changes and executive compensation, or perhaps some form of restructuring. In contrast, fair marketing and advertising of products are very important for companies in these sectors.

Proposal 8

Proposal Short-term Advertising Hedge 8

Harvard Business Review

SEPTEMBER 16, 2014

Financing WWII could have been used as an excuse for these highly confiscatory rates, but rather than dropping after the end of war, they continued to rise. Instead, the new theory was basically that all income should be considered to be the product of exercising talent and that people should be taxed less so that they had a motive to work.

System 8

System Incentives Hedge Crisis 8

Harvard Business Review

MAY 14, 2015

The company’s executives said that to help finance the plan, McDonald’s would increase refranchising (turning company-owned restaurants into franchises), take on more debt (even at the risk of lowering its bond rating ), and find $300 million to cut in general and administrative expenses. million in 2014 to a high of $12.6

Price 8

Price Franchising Short-term CFO 8

Harvard Business Review

DECEMBER 2, 2010

and Europe, though (and Japan's long struggles were seen as the product of peculiarly Japanese economic traits). Doyne Farmer , a Los-Alamos-National-Laboratory-scientist-turned-hedge-fund-manager-turned-Santa-Fe-Institute-professor, has bent over backwards not to be ignorant and arrogant about economics. In recent years J.

Decisionmaking 15

Decisionmaking Chaos Theory Hedge Marketing 15

Harvard Business Review

JUNE 3, 2011

There's a beguiling little moment in the financial-crisis documentary Inside Job where hedge fund billionaire George Soros describes the principles of oil tanker design. If they're compartmentalized, the risk of crisis is much lower than if all sorts of financial products and institutions are allowed to mix together in a giant sloshfest.

Banking 14

Banking Crisis Letter Hedge 14

Harvard Business Review

MARCH 20, 2013

For example, a firm may move from steel into engineering products because they require steel, then into engineering services, and then become big in elevators causing them to set up a separate division for that too. Once companies grow they often start moving into adjacent business areas.

Strategy 8

Strategy P&L Engineering Cooper 8

Harvard Business Review

AUGUST 15, 2011

But in general, prior to the development of a sophisticated banking system, capital was invested in illiquid assets, meaning tangible, productive ones. And by the late 1990's investment banks and hedge funds were in the business of betting for and against currencies. They would have had their capital tied up in productive assets.

Banking 11

Banking ROE Proposal Self-aware 11

Harvard Business Review

JANUARY 11, 2016

Investors from hedge funds to insurance companies are operating in an environment of low yields, near-zero interest rates, and a glut of savings. In traditional financing models, it’s just not possible for investors to see their way to a financial return based on some abstract added value of the integrated whole.

Finance 8

Finance Innovation Bond Incentives 8

Harvard Business Review

MARCH 15, 2012

Update: Politico's Ben White did have a brief testimonial from hedge fund manager and Goldman client Whitney Tilson this morning.) This was largely a product of the firm's near-death experience after the 1929 crash. But something did change on Wall Street and at Goldman in particular over the past few decades.

Hedge 13

Hedge Long-term Banking Short-term 13

Harvard Business Review

OCTOBER 9, 2015

There are two stories you can tell about finance in America. ” Both stories contain some truth, as a forthcoming study of activist hedge funds demonstrates. .” ” Both stories contain some truth, as a forthcoming study of activist hedge funds demonstrates. eBay is a recent example.

Hedge 8

Hedge Finance Short-term Document 8

Harvard Business Review

MARCH 24, 2017

ICOs are the Wild West of financing — they sit in a grey zone where the U.S. For blockchain startups, ICOs are a win-win — they allow startups to raise funds without having equity stakeholders breathing down their necks on spending, prioritizing financial returns over the general good of the product or service itself.

Venture Capitalist 12

Venture Capitalist Due Diligence Finance Long-term 12

Harvard Business Review

DECEMBER 13, 2012

That business, or any other institution, dictates life to you (Oh, wait, that's what they already do — just not in ways that benefit anyone who isn't already the Gangnam-Style scion of a mummified vampire hedge fund quadrillionaire). That the job of managers isn't just to "deliver product" — but to impact lives.

Media 8

Media Fashion IPO Brand 8

Harvard Business Review

JANUARY 14, 2014

The hedge fund founded and run by billionaire Paul Singer just announced that it now owns 6.2% Attempts to branch out into new product areas (security and enterprise switching) haven’t gone well. Most activist hedge funds are simply pushing a less extreme version of the same basic idea. Finance Tech industry Technology'

Hedge 8

Hedge Chief Technology Officer Maturity IPO 8

Harvard Business Review

JANUARY 11, 2017

Examples of this phenomenon have emerged already: The world’s largest hedge fund is developing a capability for an algorithm to make hiring and firing decisions. But perhaps more important, companies that invest in workers will discover opportunities to improve their productivity and products or services.

Skills 8

Skills Engineering Telecommunications Incentives 8

Harvard Business Review

AUGUST 8, 2018

Agricultural cooperatives Land O’Lakes and Ocean Spray have become major players in dairy production and fruit farming, earning hundreds of millions in annual revenue. That’s because a growing number of funders, both social impact funds and traditional institutions, are interested in financing workers’ takeover of a company.

ESOP 13

ESOP Company Cooper IAM 13

Harvard Business Review

OCTOBER 20, 2011

As the industrial revolution progressed, society was enjoying enormous benefits from mass production, which brought former luxuries within middle class reach. Just as electronic commerce would later sweep business, mass production came to one industry after another. More products at more pricepoints" is their name for this strategy.

ROE 12

ROE Debt to Equity Ratio Innovation Incentives 12

Harvard Business Review

FEBRUARY 12, 2018

Jana Partners, the activist hedge fund, isn’t known as a tree-hugging hippie sort of firm. Companies are beginning to realize that paying attention to the longer term, to the perceptions of their company, and to the social consequences of their products is good business. Ryan McVay/Getty Images.

CEO 11

CEO Short-term Long-term Aggregate Demand 11

Harvard Business Review

FEBRUARY 8, 2018

The cost of doing business — and especially the cost of local production — would go up, and budget-busting government spending increases would erode long-term business confidence despite short-term stimulus. Multinational companies should pressure-test 2018 sales targets and currency hedging against this scenario.

Market Risk 9

Market Risk Marketing Supply Chain Company 9