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. Citing a substantial body of expert research, the letter stated, “We believe there is a clear need for Apple to offer parents more choices and tools to help them ensure that young consumers are using your products in an optimal manner.”

Hedge 31

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. How To Be More Productive When You Work From Home.

Hedge 258
Insiders

Sign Up for our Newsletter

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

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.

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

Mills Scofield

Thoughts on Charity, Foreign Aid and Market Incentives - Tanzania. There is much in common between this and Dan Pollata’s arguments, which state that nonprofit leaders should be allowed to earn large salaries if it draws in productivity (or funds) that were otherwise unavailable to the social sector. He worked in a firm that supported fixed income investments in emerging markets. Reading about these market driven social endeavors is always exciting.

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.

IPO 8

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. .

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.

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.

Hedge 12

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.

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.

Retailers Beware: Markets Punish Stores with Too Much Inventory

Harvard Business Review

Using inventory turns alone would suggest that Wal-Mart's inventory productivity improved dramatically, and would also suggest that by 2005, Wal-Mart was substantially better than Target at managing its inventory. Practitioners have long recognized the limitation of using inventory turns to evaluate inventory productivity. 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?

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.

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.

Hedge 32

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. Secondly, employees are more productive when they are left to their jobs with little to no micro-management.

Hedge 50

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. This increase in value is not through piling on debt but improving labor productivity.

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.

First Impressions Define Your Success.

Rich Gee Group

Pretty soon, I’ll need hedge clippers from Black & Decker. How To Be More Productive When You Work From Home. home about rich our team news our fans services executive coach business coach speaking inspire media knowledge books affiliates contact Rich Gee Group 203.500.2421 First Impressions Define Your Success. Okay, I lied. Many things define your success. But one of the more important elements of initial and continued success are the ways other people perceive us.

3 Ways Your Online Side Gig Can Earn Customers’ Trust

Harvard Business

In the course of researching my new book Entrepreneurial You , I discovered three strategies that allowed leading online marketers to build trusting, respect-based relationships with their customers. I was intrigued by these stories because Internet marketers are often derided by critics due to some practitioners’ scammy tactics. Positing himself as the “crash-test dummy of internet marketing,” Flynn reveals in detail both his hits and misses.

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 B2B Software Vendors Can Help Their Customers Benchmark

Harvard Business

Neustar’s MarketShare software makes it possible for customers to measure the effects of their marketing programs and compare them to other firms. Microsoft, for example, has a program called MyAnalytics that informs customers of its Office productivity software about how much time they spend on various tasks, and the size and strength of their communications networks. Active investors such as hedge funds seek to outperform the market and index providers.

3 Things Driving Entrepreneurial Growth in Africa

Harvard Business

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. Where supply of basic inputs is thin, controlling land and other factors of production is a pathway to success. Today his Nice Rice Mill processes 70% of the region’s rice production. Emerging markets Africa Digital Article

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

Harvard Business

I agree with their vision of a future in which more companies focus on the long term and become more productive for the world (their findings accord with my own work on the dangers of short-termism ). 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.

Hedge 31

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. Recent analysis by Bain and SAP found that only 7% of bank credit products could be handled digitally from end to end. 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.

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

Harvard Business

GE made a $4 billion bet on connecting industrial equipment through the internet of things and analytical software with a suite of products called Predix Cloud. 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

Ries 30

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.

Are You Accurately Measuring Your Company’s Digital Strength?

Harvard Business

Whether improving omni-channel commerce or developing digital extensions to product lines, businesses are working out how to drive profitability through digital. Armed with a hypothesis that the stock market was undervaluing digital, we sought to create the largest known repository of digital data on U.S. Our aim was to prove the link between digital strength and shareholder value, and do so in a way that passes the rigorous standards of hedge funds.

How the Carl Icahns of the World Benefit Firms but Not Workers

Harvard Business Review

” Both stories contain some truth, as a forthcoming study of activist hedge funds demonstrates. The early activists were pension funds, but starting in the 1990’s some hedge funds adopted the strategy. The number of companies targeted by activist hedge funds has increased dramatically since then, to more than 200 in 2013. manufacturing plants from 1994 to 2007, as well as a list of instances where hedge funds bought at least 2% of a medium- or large-sized company.

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

Harvard Business

In November, United States’ crude oil production exceeded 10 million barrels per day for the first time since 1970, according to the US Energy Information Administration (EIA). shale oil and gas producers have been ramping up production to take advantage of rising crude oil prices — prices that had been rising in the wake of a deal between the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other non-OPEC producers to reduce oil output.

Is Your Supply Chain Ready for a NAFTA Overhaul?

Harvard Business

Changes could range from adjustments to the rules of origin for product content, and more-stringent labor standards, to the extreme of withdrawal and a return to World Trade Organization most-favored-nation tariffs. producers to lower their prices in foreign markets, raising demand for U.S. Options and hedges. Leadership teams that develop strategic options and hedges for a variety of future scenarios navigate better when new developments unfold.

Yes, Short-Termism Really Is a Problem

Harvard Business Review

” On the other side, noted economist and hedge fund adviser Larry Summers cautions that reforming “quarterly capitalism” would risk driving us toward “Japan’s keiretsu system, which insulated corporate management from share price pressure by tying large companies together.” Some studies show that long CEO tenures produce better performance (though that appears to be limited to more stable industries) and lead to better product-safety results.

The Real Reason CEOs Don’t Like Activist Investors

Harvard Business Review

When executives complain about activist hedge funds, it’s often under the cover of short-termism. Keusch looked at the impact of activist hedge funds from 1994 to 2012, to see what impact they had on management. None of this should let activist hedge funds off the hook in terms of their broader impact on the economy. Yes, on average they tend to be good for profits, productivity, and innovation – even measured several years after the fact.

Why Consensus Kills Team Building | N2Growth Blog

N2Growth Blog

The gist of the argument seems to be that for teams to be productive, employees have to feel “empowered&# by having an equal voice. And as odd as it may sound, one of the greatest impediments to building productive teams is practicing management by consensus. In a highly productive organization the power and influence of your voice is earned through trust and performance, and not entitlement.

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.

Blog 253

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. Yet Icahn has never invested in Apple’s value-creating capabilities that increase innovation and productivity. Capital markets work best when information is promptly and widely available to all. Economics & Society Financial markets Labor Policy Article

How to Figure Out What Your Side Hustle Should Be

Harvard Business

Entrepreneurship, even in the form of part-time work to complement a traditional day job, can provide a useful hedge against economic uncertainty and a way to develop new skills. In his case, he has one course (on getting promoted faster); he markets it through one channel (webinars); and he identifies webinar opportunities through one mechanism (affiliate partnerships). Facebook ads or search engine marketing might be appealing possibilities, but for now, they’re too much.

Why Business Leaders Need to Read More Science Fiction

Harvard Business

Rising sea levels flood Manhattan in Kim Stanley Robinson’s New York 2140 , prompting hedge fund managers and real estate investors to create a new intertidal market index. They make us more efficient and productive. At the end of the 19th century, New York City stank. One hundred fifty thousand horses ferried people and goods through the streets of Manhattan, producing 45,000 tons — tons! — of manure a month.

4 Kinds of Workplaces, and How to Know Which Is Best for You

Harvard Business

But there’s more than one kind of successful organization, and there are many kinds of productive workplaces. I’ve had the opportunity, over the last two decades, to immerse myself in some of the world’s most creative, energetic, and productive workplaces, from health care to financial services, from Silicon Valley to Madison Avenue. Many investment banks and hedge funds operate this way, as do some law firms, consulting outfits, and tech titans.

Hedge 44

Warren Buffett Is Betting the Airline Oligopoly Is Here to Stay

Harvard Business

One example would be activist hedge funds, which are known to push for and successfully implement product market strategies that increase the market share of a target firm at the expense of its competitors. However, market share is zero-sum: An increase in market share of one firm must come at the expense of a competitor. Warren Buffett got burned with an airline investment in the 1990s.

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.

Welch 30

How Large Food Retailers Can Help Solve the Food Waste Crisis

Harvard Business

According to the Guardian , approximately 45% of all fruits and vegetables, 35% of fish and seafood, 30% of cereals, and 20% of meat and dairy products are wasted by suppliers, retailers, and consumers every year. 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.

A 6-Part Tool for Ranking and Assessing Risks

Harvard Business

To consider another example, say a hedge fund is looking to acquire a tech company that claims to have a leading-edge technology. That Accessibility score might mean a competitor could beat the product to market, and the Effect could be the fallout from a controversial marketing campaign. One question the analysts might ask for Effect is: “What is the effect on us if the tech company’s competitors beat us to market?”

SWOT 34