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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.

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Managing Risks Means Managing Arguments

Harvard Business Review

Managing risks — especially the hard-to-pin-down, moving-target risks that any financial trading operation has to cope with — inevitably involves arguing. The words "risk management" usually evokes less subjective, more data-driven pursuits. But data and objectivity can only get you so far.

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The Answer to Short-Termism Isn’t Asking Investors to Be Patient

Harvard Business Review

These arguments have proven highly influential and led to several policy proposals to encourage long-term holdings – so-called “patient capital” France’s Loi Florange doubles investors’ voting rights after two years. Other proposals go further. Productivity also improves in plants sold by hedge funds.

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The Fastest-Growing Cause for Shareholders Is Sustainability

Harvard Business Review

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. ” We found that 58% of the shareholder proposals in our sample were filed on immaterial issues.

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Is Your Supply Chain Ready for a NAFTA Overhaul?

Harvard Business Review

Notably, the proposed “ border adjustment ” that is part of a tax reform package Congress is debating could cause the U.S. Senior leaders who have learned to manage in uncertainty focus on the few risks that matter most. Options and hedges. dollar to appreciate relative to other currencies. political upheaval.

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Research: Index Funds Are Improving Corporate Governance

Harvard Business Review

Hedge fund activist Bill Ackman posed that question recently in his fund’s annual letter to investors. At the same time, clients withdrew $207 billion overall from actively managed funds, according to the research firm Morningstar. In the same way, index funds don’t selectively buy more shares when managers perform well.

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Yes, Short-Termism Really Is a Problem

Harvard Business Review

With Hillary Clinton’s tax proposals to encourage longer-term investing , the debate over whether American business is too fixated on the short term has moved from the dimly lit offices of earnest policy wonks into the klieg lights of U.S. Hedge fund activists loom large in the discussion of short-termism. primary season.

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