The Prisoner’s (Hedge Fund) Dilemma

CO2

SAC Manager Arrested for Insider Trading at Hedge Fund. If you speak to most hedge fund managers, they will tell you what they create is efficient markets. The payoffs hedge fund employees are real, but the business has the feel of a game. In a culture of rule-breaking or rule-skirting, hedge fund employees usually maintain silence. The post The Prisoner’s (Hedge Fund) Dilemma appeared first on | Elements of Leadership Blog. by Gary Cohen.

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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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Activist Hedge Funds Aren’t Good for Companies or Investors, So Why Do They Exist?

Harvard Business

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. Total shareholder return is what the activist hedge funds claim to enhance. before paying the hedge fund 2% per year plus 20% of that 12.4%

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The Marketing Strategy: What You REALLY Need To Know

Strategy Driven

Your business thrives on how effective its marketing strategy is. Marketing is a concept that can almost consume a business that hasn’t got its strategy in order. Most businesses place a vast proportion of their budget towards marketing and its various sub-categories. In terms of your marketing approach, you need to take into account how you are communicating your business brand via your imagery. The next approach to your marketing strategy is to work on the brand.

Why Play in the U.S. Stock Market?

Coaching Tip

Stock Market has always been based on knowing more than the general public does about market direction and the industry, company and corporate leadership of those stocks you invest in. So, why would you play in the market when you know the game is rigged? has brought numerous cases, part of a campaign to root out insider trading and, in theory, make markets fairer for the average investor. Especially in volatile markets, the temptation to cheat is fierce.

How Hedge Funds Create Criminals

Harvard Business Review

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. These events raise suspicion that many hedge fund traders may have succeeded at beating the market not through careful research and original analysis but by breaking the law.

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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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Guest Post: An Entrepreneur's Thoughts on Market Incentives & Foreign Aid

Mills Scofield

Thoughts on Charity, Foreign Aid and Market Incentives - Tanzania. He worked in a firm that supported fixed income investments in emerging markets. 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. I think that microfinance is one of those rare game changing social initiatives that manages to use market forces to drive social change.

5 Characteristics of Digital Giants that Enable Domination

Skip Prichard

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. In fact, many of their leaders have forgotten how they got there – mission, talent, offering, and markets. Rule the World.

When an Activist Hedge Fund Thinks a Company’s Salaries Are Too High, Who’s Right?

Harvard Business Review

The hedge fund founded and run by billionaire Paul Singer just announced that it now owns 6.2% Its IPO in 1999 was a sensation ; by autumn 2000 its market capitalization topped $65 billion and the ratio of its stock price to the next year’s projected earnings was a staggering 483. Its high-end Internet routers were gaining share on market-leader Cisco, and the sky was the limit. Most activist hedge funds are simply pushing a less extreme version of the same basic idea.

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Why is Inflation All over the World the True Reason for the Decline in the Bitcoin Price?

Strategy Driven

Bitcoins: The Hedge Against The Inflation: Now it has already been proved that the reason for the rise in inflation is generally the increase of money supply in an economy in the long run. But you still have the choice to deal with this long run inflation by hedging the bitcoins against it.

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Calculating the Market Value of Leadership

Harvard Business Review

In recent years, investors have learned that defining the market value of a firm cannot just be based on finances. But recently, these financial outcomes have been found to predict only about 50% of a firm’s market value. Realizing the market value of leadership could also have a significant impact on many organization processes: risk management, governance, social responsibility, reputation, and leadership development.

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Case Study: Target the Right Market

Harvard Business Review

We're playing in two major markets. Andrew had been one of her first hires at SparkPlace, a two-year-old provider of internet marketing software, and he'd continued to impress her. Founder and CEO Dirk Middleton liked him, too, especially after Andrew coined what would become the company slogan: Marketing is broken. He firmly believed that cold-calling and spamming were destroying marketing. Marketing isn't going to like this.". Marketing is broken.

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. They did not spend as much time thinking about local events that have implications for their emerging market operations. We identified three emerging market risks that are top multinational leaders should be paying more attention to this year: the election of populists in Brazil and Mexico increasing the cost of doing business. Emerging Markets Require a Risk-Reward Balancing Act.

Case Study: Target the Right Market

Harvard Business Review

We're playing in two major markets. Andrew had been one of her first hires at SparkPlace, a two-year-old provider of internet marketing software, and he'd continued to impress her. Founder and CEO Dirk Middleton liked him, too, especially after Andrew coined what would become the company slogan: Marketing is broken. He firmly believed that cold-calling and spamming were destroying marketing. Marketing isn't going to like this.". Marketing is broken.

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.

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

Leading Blog

In this case, you can either find new markets where you might compete or try to defend and extend the ultimate conclusion to give you time to create a better ending. The best strategy when facing high degrees of uncertainty is to hedge and build options for the future.”. T HE INNOVATION WE PRIZE at successful start-ups is a mindset that is brought into the start-up and not necessarily the inherent quality of every start-up.

Lead with a Coherent Strategy

Coaching Tip

Too many business leaders are preoccupied with the next answer to growth and find themselves stretched thin – trying to play in too many disparate markets and pursuing multiple strategies and directions that undermine rather than reinforce each other. As a result, they forgo the right to win in any market. . Way to play: They make a deliberate choice about how to add value in the market – e.g., as a value player, an experience provider, an aggregator, etc. .

An Oxymoron: $1-to-2 Billion Penalty With No Wrongdoing

Coaching Tip

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. Stock Market What is

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Research: How Investors’ Reading Habits Influence Stock Prices

Harvard Business

A cornerstone of efficient and transparent markets is freely available information. In 2001 professors Gur Huberman and Tomer Regev of Columbia University drew attention to a peculiar sequence of market reactions to news regarding a cancer research breakthrough licensed by biotech firm EntreMed. And reprints of old news continue to spur market reactions. In “When Can the Market Identify Stale News?” Financial markets Digital Article

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Today, Economic Confidence is Fragile

Coaching Tip

Over the last three weeks or so, hedge fund managers have been betting that stocks will fall further. Stock Market confidence is fragile debt problems deflationary depression financial collapse hard times jobless recovery is an oxymoron wall streetAs the Dow Jones industrial average plunged 513 points last Thursday, then gyrated wildly on Friday, all of Wall Street seemed to be asking the same question: What the heck is going on?

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What Markets Do and Don’t Get About Innovation

Harvard Business Review

In 2007, Clayton Christensen co-founded Rose Park Advisors, a hedge fund devoted to investing in disruptive companies. Disruptive innovation can take several forms, and the market understands some types better than others. But do markets really follow the logic of an academic theory? New market disruptive – a cheaper, more accessible, and worse-performing product that turns non-consumers into customers. Mostly, though, markets get things right.

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. O NE OF the unfortunate side effects of living in an age of accelerating technology is having to deal with increased uncertainty. When faced with uncertainty, how should leaders react?

Retailers Beware: Markets Punish Stores with Too Much Inventory

Harvard Business Review

If inventory levels are predictive of sales and earnings surprises, could one invest based on inventory turns and beat the returns one gets in the market? Based on these results, the three designed an investment strategy that handily outperforms the market even after controlling for factors like risk and size of firm. This post is part of the HBR Forum, The Future of Retail.

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. Recently, authorities have taken on hedge funds, alleging they violated this regulation. A century ago, J.P.

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Trust is a Funny Thing

Lead Change Blog

We may hesitate, hedge, obfuscate or even feel that we have to lie. Maybe it’s simply that the company’s suffering from a tough market. The little ways that trust is lost. Trust is a funny thing because it’s not tangible and yet its absence is obvious. When we don’t trust people, institutions or situations, we are not allowed to bring our best selves. We may avoid situations entirely. Those same behaviors are directed at us when we’re not trusted.

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The “Next Practices” of Strategy-Setting

N2Growth Blog

By including a Culture By Design perspective in your planning approach you hedge the bet that the organization can succeed in the execution of its plans. For the spoils goes to the victor and is measured in terms of growth, market share and profitability (at least in strategy-setting terms). Are your strategic planning practices flat and uninspired? Have you reduced your planning process to a once per year, budgeting exercise?

Post-Covid Work Trends and the Future of Work

HR Digest

Reason being an ability to hedge their bets and get a foothold in diverse markets and manage risks better. Another major difference in outlook is the government’s role in market forces.

How to Maintain Quality While Expanding Your Lawn Care Business

Strategy Driven

After all, with so many happy customers under your belt, there’s no reason to deprive potential new clients of your skillfully manicured lawns and pristinely trimmed hedges. When your business is successful, it’s natural to want it to grow, and that’s no different in the lawn care business.

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. Jeremey Donovan is Group Vice President of Marketing at Gartner Inc., The following is a guest piece by Jeremey Donovan. Of the array of skills that comprise leadership, the ability to craft and communicate strategic vision is simultaneously the most valuable and least well-practiced.

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 Mergers & acquisitions Growth strategy Financial markets Digital Articlehbr staff/stan honda/Getty Images.

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5 Leadership Lessons I Learned from A Billionaire Investor: Ray Dalio

Strategy Driven

The name of hedge fund billionaire Raymond Dalio triggers emotions of adoration, admiration, and even dislike. Born in 1949, the American investor, philanthropist, and hedge fund manager is the founder, Co-Chief Investment Officer, and Co-Chairman of Bridgewater Associates, one of the world’s leading hedge funds with a more than $130 billion in assets under management. economy was in a bull market.

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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. 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. Financial markets Digital ArticleInnovation has the potential to transform the investment industry.

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

Harvard Business

If earnings are low, “the market sells first and asks questions later” as the adage goes. An investor can outperform the market by simply waiting to collect the dividend. Turning from evidence on liquidity to evidence on short-term investors, activist hedge funds are seen as the epitome of the latter – allegedly stripping assets and piling on debt to make a quick buck. Productivity also improves in plants sold by hedge funds. Tim Evans for HBR.

Research: Index Funds Are Improving Corporate Governance

Harvard Business

Hedge fund activist Bill Ackman posed that question recently in his fund’s annual letter to investors. Unlike high-profile activist hedge funds, which attempt to outperform the market, the primary goal of passive investors is to deliver returns that match a market index. stocks by market capitalization, and the Russell 2000 comprises the next largest 2,000 stocks.) Financial markets Financial Services Digital Articlelaura schneider FOR HBR.

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What If Investors Who Held Their Shares Longer Got More Voting Power?

Harvard Business

But I long for actions that go beyond admonitions to managers and boards to do better, that give both parties a better chance to stand up to capital markets players, like activist hedge funds, pressuring them to become too short-term focused. Because anybody can buy that equity on a stock market without permission of the company, buyers can fundamentally change the terms of that equity investment. There is no cost to anybody other than the investors in hedge funds.

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Should Dual-Class Shares Be Banned?

Harvard Business

Some of the largest companies of recent times by market capitalization, such as Facebook, Alphabet, and Alibaba, carry dual class-shares. MSCI’s recent analysis shows that unequal voting stocks outperformed the market over the period from November 2007 to August 2017. For example, Pepsi’s transformation from a purveyor of sugary drinks toward healthy snacks would have been hindered had hedge funds succeeded in their demands. CAPTION TEXT HERE/Getty Images.

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The Fastest-Growing Cause for Shareholders Is Sustainability

Harvard Business

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. We also found that subsequent to filing shareholder proposals, targeted firms experienced changes in market valuation. Paul Garbett for HBR.

How Blockchain Applications Will Move Beyond Finance

Harvard Business

It’s not surprising that some of the closer-to-market applications of the technology are in the financial sector. Whereas this new type of organization may achieve the speed and efficiency of a spot market, it may be able to replicate the complex forms of governance required to execute the complex tasks that take place today within the boundaries of a firm. Currency Financial markets Technology Financial Services Technology Digital Article

How Banks Can Compete Against an Army of Fintech Startups

Harvard Business

The marketing, underwriting, and servicing of SME loans have largely taken a backseat. New digital entrants have spotted the market opportunity created by these dynamics, and the result is an explosion in online lending to SMEs from fintech startups. They estimate that online lenders will constitute nearly a fifth of the total SME lending market by then. Established banks have real advantages in serving the SME lending market, which should not be underestimated.

3 Things Driving Entrepreneurial Growth in Africa

Harvard Business

Firms are realizing what microfinance has known for a while: Local self-policing groups, or village headmen who police honor codes, can hedge cash flows in far-flung places. Emerging markets Africa Digital ArticleFatigue may be setting in for some Western investors’ interest in African innovation, particularly those that have yet to reap rewards to brag about.

How to conduct pre-employment background checks?

HR Digest

There is a great talent and skill gap in jobs in today’s job market. Negligent hire claims are a serious risk and a thorough background check helps you hedge that risk. (A