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.

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The Man Who Is Changing The World.

Rich Gee Group

He started the Khan Academy as a way to tutor his cousins remotely — while he was a hedge fund analyst in Boston, and they were students in New Orleans. It was clear there was a huge unmet need, so Sal left his hedge fund job and started Khan Academy with the mission of providing a free world-class education to anyone, anywhere. Homophobia has a global reach.

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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)?

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5 Characteristics of Digital Giants that Enable Domination

Skip Prichard

How is extreme consolidation changing global business? How do you become a market leader in the midst of rapid change? You predict that we will have only 100 dominant players in 50 markets by 2050. Another indication of the speed and extent of dominance is market cap.

3 Emerging Market Risks Companies Should Watch for in 2018

Harvard Business

This means that many emerging market risks get cut from the senior leadership agenda. At Frontier Strategy Group, we observed that in 2017, executives and boards paid the most attention to risks that dominated global headlines: Brexit, the Trump administration’s trade policy, cybersecurity, and, more recently, North Korea. They did not spend as much time thinking about local events that have implications for their emerging market operations. miragec/Getty Images.

The Right Entry Point for Emerging Markets

Harvard Business Review

The topic — part of a series on innovation sponsored by Singapore's Economic Development Board and coordinated by Harvard Business Review — was "What's the Right Entry Point for Emerging Markets: Target Customers at the Bottom or the Middle of the Pyramid?". After all, the World Bank estimates that the number of middle class consumers in emerging markets will jump from 420 million today to more than 1.2 It depends on what "compromise on market research" means.

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The Dark Side of Efficient Markets

Harvard Business Review

It is generally accepted that efficiency represents the optimal, aspirational state for any market. 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. Think about how markets evolve.

Why Leaders Need to Think More Like Professional Gamblers

Leading Blog

Should they make a big bet, hedge their position, or just wait and see? By understanding the data around which leads go on to become great customers, a sales leader can then work closely with their marketing colleagues to figure out new sources of potential customer prospects. Walsh is the CEO of Tomorrow, a global consultancy on designing companies for the 21 st century. * * * Like us on Instagram and Facebook for additional leadership and personal development ideas.

One Big Reason There’s So Little Competition Among U.S. Banks

Harvard Business

Yet the unfortunate side effect of uncompetitive markets is that consumers pay higher prices. Index funds have given millions of people relatively low-cost access to the stock market. Indeed, the asset management firms engage with hundreds of companies each year to discuss matters of strategic importance, including product market strategies. To distinguish correlation from causation, we use BlackRock’s 2009 acquisition of Barclays Global Investors (BGI).

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Post-Covid Work Trends and the Future of Work

HR Digest

A recent Gartner survey says that global M&A activity increased after the financial crisis, and many companies were nationalized to avoid failure. Reason being an ability to hedge their bets and get a foothold in diverse markets and manage risks better.

Using Storytelling To Craft And Communicate Your Strategic Vision

Tanveer Naseer

Here, I use the labels of the indispensable ‘Pixar Pitch’ to summarize Salman’s story: ACT I: Once upon a time, I was an analyst at a Boston-based hedge fund. And the moral of the story is, to build an online, global classroom so that everyone can increase their math and science aptitude. Jeremey Donovan is Group Vice President of Marketing at Gartner Inc., The following is a guest piece by Jeremey Donovan.

How Multinationals Should Be Planning for Brexit

Harvard Business

Only a minority of firms is well ahead in planning and preparing a UK market strategy. Seven participants in our workshop said they are worried about Brexit leading them into a price war with competitors, while six were worried competitors would change their offerings to better fit customer needs, undermining their overall performance and market position. The company should look to bring in staff from other markets to apply their skill sets and ideas.

GE’s Fall Has Been Accelerated by Two Problems. Most Other Big Companies Face Them, Too.

Harvard Business

GE’s fall accelerated on October 25, 2015, with activist hedge fund Trian announcing a $2.5 The happiest folks out there are probably GE Healthcare’s two big global competitors, Philips and Siemens Healthineers. Mergers & acquisitions Growth strategy Financial markets Digital Articlehbr staff/stan honda/Getty Images.

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Startups Could Fundamentally Change the Way Big Investors Operate

Harvard Business

This disconnect is a major problem for the continuing development of efficient capital markets. Collectively, the world’s investment giants hold in excess of $70 trillion in assets, which represents the bulk of investable capital globally. Given their size and appetite for diversification, these gigantic investors are a significant source of financing for many companies and governments in the developed world, and their investment activities can and do move markets.

How Blockchain Applications Will Move Beyond Finance

Harvard Business

But bitcoin has been extremely successful at solving the problem it was designed for: allowing a global network to securely transact and exchange value without the need for a costly intermediary. It’s not surprising that some of the closer-to-market applications of the technology are in the financial sector. Based on the research of the Fletcher School at Tufts University's Institute for Business in the Global Context and Planet eBiz.

How Blockchain Is Changing Finance

Harvard Business

Our global financial system moves trillions of dollars a day and serves billions of people. A vast, globally distributed ledger running on millions of devices, it is capable of recording anything of value. After all, how do you cut cost from a business or market whose structure has fundamentally changed? Blockchain changes the equation by enabling companies of any size to raise money in a peer-to-peer way, through global distributed share offerings.

Japan Is Counting on Shareholder Activism to Improve Its Economy

Harvard Business

CEOs live in fear of activist hedge funds, and politicians worry about their effects on workers. Abe has even met with one of the most prominent American activists, Dan Loeb , in a private albeit well-publicized encounter, suggesting he sees value in foreign involvement in Japanese markets. given that Japanese companies are global outliers in terms of excess cash, low ROEs , and limited domestic growth prospects ).

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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. billion from 2010 through 2013), it would probably still be bankrupt but for the booming Chinese market.

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Why GE’s Jeff Immelt Lost His Job: Disruption and Activist Investors

Harvard Business

So is John Rice, the head of global operations, along with CFO Jeffrey Bornstein. During Immelt’s tenure, GE’s stock market value fell by about half. And in the 21st century, the majority of public company shareholders are institutional investors (banks, insurance companies, pensions, hedge funds, REITs, investment advisers, endowments, and mutual funds), not individuals. (In Financial markets Innovation Corporate governance Digital Article

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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. The recent price swings highlight a new era of uncertainty gripping the world’s energy markets. hbr staff/bettmann/Getty Images.

Do Commodities Speculators Make Things Cost More?

Harvard Business Review

Or is the problem simply that speculators have taken over the market for a crucial commodity? Markets that existed mainly for the convenience of industry have become dominated by exchange-traded funds, hedge funds, and investment banks. So, on balance, having a futures market appears better than not having a futures market. But the new commodities market participants may have made things worse, as Kocieniewski''s aluminum findings seem to show.

Should HSBC Stay or Should It Go?

Harvard Business Review

London-based HSBC, arguably the world's most global bank, recently described speculation that it was planning to shift its headquarters from London to Hong Kong as "presumptuous." What is so special about where a global organization headquarters itself? HBR Press, April 2011), very few firms are truly global in the sense that their business isn't concentrated in any one spot. The UK hardly seemed like an alternative high-growth market. Finance Global business

Why Quants Should Manage Your Supply Chain Risk

Harvard Business Review

When Thai flooding created significant shortages in the hard disc drive market, manufacturers lost millions of dollars. higher capital costs, business continuity insurance, dual-tooling in manufacturing) and the latter refers to costs that are not always visible or recorded but exist nonetheless (opportunity costs of not entering a risky market, concentration risk in the supply base, reduced valuations, etc.). Global business Operations Risk management

Investors Always Come Back … Even to Argentina

Harvard Business Review

Argentina lost big to a group of American “vulture” hedge funds in court last week, when the Supreme Court declined to reconsider an appeals court decision that the funds had the right to demand that the country make good on a bunch of old bonds they owned even though it long ago renegotiated the terms of that debt with most creditors. law does prevail, whatever the consequences for global debt markets. Economy Finance Global business

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

HR Digest

"Unleashing Collective Genius" As globalization takes a sharp turn from government to business, the issue of global talent mobility rapidly moves up the agenda. I was at a conference recently and one of the speakers remarked that “Culture hedges against the risk of uncertainty.” They’ve helped drive the development of mobile payment solutions to promote financial inclusion in emerging markets.

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Saudi Arabia’s New Economic Reforms: A Concise Explainer

Harvard Business

In early 2016, the country began a process of reviewing multiple economic sectors, including energy, labor markets, pensions, and health. For example, this includes the replacement of Saudi oil-veteran Ali Al Naimi as Minister of Petroleum, a position critical to world oil market dynamics, with Khalid Al Falih, Minister of the newly created department of Energy, Industry and Mineral Resources. Saudi Arabia’s government reshuffle in early May is more than a political watershed.

Who Killed the GE Model?

Harvard Business

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. Simplifying a bit, the chief explanations were these: First, that GE benefited from scale and dominant market positions in industrial businesses. Private equity and the new capital markets. But others remain, including in emerging markets.

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Idle Funds are the Devil's Playground

Harvard Business Review

Regarding the latter, we point to some well-documented and broadly perceived shifts in the geography, demography, and technology of global economic activity. vision of financial world order; as Time magazine reported, he was "bursting with hubris over its booming equity markets and its just-announced 5.6% Mahathir stood his ground, not just at Davos but in the financial markets, by refusing the IMF's aid, reducing Malaysia's interest rates, and restricting currency trading.

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Public Pension Funds Perform Better When They Keep Politics at Bay

Harvard Business

The enormity of the challenges confronting pension funds — including substantial deficits, a tumultuous global economy, and a low-return environment — means that they need to be able to focus on maximizing investment returns without distraction. This move was designed to reduce the possibility of stakeholders pressuring politicians to intervene if market turbulence leads to substantial short-term losses for the fund. We pay competitively but no hedge fund-size packages.”

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

Harvard Business

And some companies with employee majority-owned stock programs, such as Publix Super Markets and outerwear maker W.L. 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. The co-op gives lobstermen a way to participate in the wholesale market and to share in the profits. Klaus Meinhardt/Getty Images.

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How Incentives for Long-Term Management Backfire

Harvard Business

Four hundred seventy-one companies in the S&P 500 bought back stock last year, and 372 companies expanded their dividends — actions undertaken in spite of the need to invest heavily to keep up with global market changes. The normal culprits for short-termism are short-term-minded hedge-fund managers and activist shareholders, as well as CEOs worried about big bet investments with uncertain paybacks.

Former Skeptics Can Be Your Best Spokespeople

Harvard Business

presidential election, Christopher Graves, a recent Rockefeller Foundation Bellagio resident honoree for behavioral science, global chair of Ogilvy Public Relations, and chair of the PR Council, and Steve Simpson, chief creative officer of Ogilvy & Mather North America, dissect and debate the candidates’ communications and marketing strategies and techniques. Marketing Advertising, Marketing & Public Relations Digital Article

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What Initial Coin Offerings Are, and Why VC Firms Care

Harvard Business

Then, via price dynamics determined by market supply and demand, the value is settled on by the network of participants, rather than by a central authority or government. Secondly, they are global instruments — not national ones — and they are funded using bitcoin, ether and other cryptocurrencies that are not controlled by any central authority or bank. As of March 2017, the market capitalization of the ether token was more than $4 billion.).

7 Skills That Aren’t About to Be Automated

Harvard Business

It’s no wonder, then, that young people are anxious about their ability to compete in the job market. Kumar is well known on Capitol Hill and with global tax experts because he has deep and broad knowledge of the subject and understands the dynamics of how policy will shape up now and in the future. John Fedele/Getty Images.

Research: Objective Performance Metrics Are Not Enough to Overcome Gender Bias

Harvard Business

” We collected data from a private online knowledge-sharing platform where buy-side (hedge fund, mutual fund) investment professionals (analysts, portfolio managers) share their investment recommendations to buy and sell a given security, along with the analysis supporting their position, with other members of this platform. Given the general underrepresentation of women among investment professionals, especially in hedge funds, it was not surprising that only about 4.2%

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

Harvard Business

The velocity in acquiring and exploiting this personal data can help these companies obtain significant market power. He noted his agency’s “particular concerns in digital markets.” In a monopolized market, personal data is concentrated in a few firms. In a competitive market, users could conceivably demand compensation not only for their data but also their contributions to YouTube and Facebook. Market economies rely on trust.

How Large Food Retailers Can Help Solve the Food Waste Crisis

Harvard Business

Large food retailers such as Kroger, Sainsbury’s, Tesco, Carrefour, and Wal-Mart stand in a unique position to address this global food issue. And because the traditional supermarket industry is highly concentrated (for example, in the UK, the top seven food retailers account for 87% of the grocery market), retailers have considerable market power to make change. Tara Moore/Getty Images.

The Internet Shouldn’t Run on Dirty Energy

Harvard Business Review

Globally, it equates to 2% of all annual emissions linked to climate change. If the world is to become ever more efficient and reach global climate goals, internet power will need to play its part. Leading companies are learning that sourcing renewable energy for data centers is a low-cost way to demonstrate commitment to global climate goals while adding reliability and predictability to energy consumption.

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Purpose Point of View

Strategy Driven

Whether it’s Mark Zuckerberg joining Bill Gates and Warren Buffet in a Giving Pledge, the six biggest global communications firms putting differences aside in a U.N. It drives large efforts from spearheading a movement to bringing a game-changing product or technology to market. In fact, a recent Korn Ferry global survey of 1,000 executives finds that when it comes to what matters most, purpose trumps money. No matter which way you turn, the focus on ‘purpose’ is everywhere.

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How Exactly Will We Move Away from Fossil Fuels?

Harvard Business Review

Investors who have significant money tied up in the fossil fuel industry — every pension and market fund, essentially — are facing a massive risk. are making coal plants more expensive, regulation is not truly impeding global fossil fuel use. And partly because of America’s intransigence, 19 years of global negotiations on binding limits on carbon have led nearly nowhere.

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Let Data Ask Questions, Not Just Answer Them

Harvard Business Review

Global enterprises and entrepreneurs alike will be able to use big datasets to generate business hypotheses around innovation and new value creation. Similarly, you can be sure that many — if not most — highly-secretive quantitative hedge funds have highly proprietary AH engines relentlessly recommending trading strategies and investment themes that lend themselves to review and refinement. The bigger the data, the more profitable and productive predictive analytics can be.

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Why Bankers Need to Be Put Into Little Boxes

Harvard Business Review

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. Financial markets are like that, Soros goes on. Here he is in early 2009 , explaining the bad parts of M&T's staggeringly good (for a bank in the middle of a global financial crisis) 2008 earnings report: [T]he specific drags on our 2008 earnings.

The Brighter Side of Decades of Disappointing Investment Returns

Harvard Business Review

Sheelah Kolhatkar, in a cover story (and what a classy cover it is) in the new Bloomberg Businessweek , argues that the great alternative to plain-vanilla equity and debt investing — the hedge fund — is more or less over, too. But the great global recovery after World War II was accomplished in an environment of artificially low interest rates and capital controls — that is, financial repression.

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