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The Disruption of Venture Capital

Harvard Business Review

In a relatively short time, venture-backed companies have grown to account for over 20% of US GDP today. Hedge fund investors who deploy capital in large and liquid markets can scale their time well. The best VCs have successfully identified major industry disruptions before they occur.

Hedge 16
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What If Investors Who Held Their Shares Longer Got More Voting Power?

Harvard Business Review

In fact, if more American companies were focused on the long term, they estimate, investors would have an additional $1 trillion, workers would have an additional 5 million jobs, and the country would have more than an additional $1 trillion in GDP. There is no cost to anybody other than the investors in hedge funds.

Hedge 12
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Is America a Failing State?

Harvard Business Review

Yep — for just one example, see then-Secretary of the Treasury Hank Paulson tipping off his hedge fund buddies about Fannie and Freddie. Mounting demographic pressures, including slum creation? Just tour Baltimore. Widespread corruption and kleptocracy? Delegitimization of the state? Progressive deterioration of public services?

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How to Help Cyprus Help Itself

Harvard Business Review

The economist Robert Shiller has suggested issuing bonds that are linked to GDP, arguing that "the opportunity to participate in the uncertain economic growth of the issuer might well excite, rather than scare off, investors — just as it does in the stock market.". Clearly, a new approach is desperately needed.

GDP 9
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Severe Weather Threatens Businesses. It’s Time to Measure and Disclose the Risks

Harvard Business Review

They work like any other traditional hedging instruments except that the index on which they are settled is a weather index. Our research has focused on how businesses can manage weather-related risks, including estimating potential losses and their probability, and potentially using financial instruments to hedge against that risk.

Hedge 8
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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.” Either explanation is plausible.

Hedge 8
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The Danger of Turning Cynical About Silicon Valley

Harvard Business Review

Tech-world denizen Jesper Andersen tweeted a similar sentiment: “Change ‘startup’ to ‘hedge fund,’ ‘ecstasy’ to ‘cocaine’, and ‘douche-bag’ to ‘douche bag’ and you too can see SF is just another Wall St.” Mostly white mostly dudes getting rich by making stuff of limited social purpose and impact,” economist Umair Haque argued on Twitter.