Roderick Martin, Peter D. Casson, and Tahir M. Nisar
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199202607
- eISBN:
- 9780191707896
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199202607.003.0003
- Subject:
- Business and Management, Finance, Accounting, and Banking
Different types of institutional investors have different propensities to engage, influenced by the regulatory environment, the size and distribution of their portfolios, their time horizons, and the ...
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Different types of institutional investors have different propensities to engage, influenced by the regulatory environment, the size and distribution of their portfolios, their time horizons, and the financial incentives of fund managers, as well as by corporate performance. The chapter identifies the costs and benefits of engagement. USS Limited is examined as a case study of a major pension fund, with an articulated investment philosophy.Less
Different types of institutional investors have different propensities to engage, influenced by the regulatory environment, the size and distribution of their portfolios, their time horizons, and the financial incentives of fund managers, as well as by corporate performance. The chapter identifies the costs and benefits of engagement. USS Limited is examined as a case study of a major pension fund, with an articulated investment philosophy.
Roderick Martin, Peter D. Casson, and Tahir M. Nisar
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199202607
- eISBN:
- 9780191707896
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199202607.003.0004
- Subject:
- Business and Management, Finance, Accounting, and Banking
Institutional investors adopt different methods of engagement. Much investor engagement is routine and informal; other engagement is extraordinary and arises from specific circumstances, such as ...
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Institutional investors adopt different methods of engagement. Much investor engagement is routine and informal; other engagement is extraordinary and arises from specific circumstances, such as firms adopting remuneration policies which are viewed as inconsistent with ‘best City practice’. Routine engagement is conducted by individual investors. But extraordinary engagement is usually conducted through collective organizations, such as the Institutional Shareholders' Committee, as a means of reducing the costs of monitoring and intervening and addressing ‘free rider’ problems.Less
Institutional investors adopt different methods of engagement. Much investor engagement is routine and informal; other engagement is extraordinary and arises from specific circumstances, such as firms adopting remuneration policies which are viewed as inconsistent with ‘best City practice’. Routine engagement is conducted by individual investors. But extraordinary engagement is usually conducted through collective organizations, such as the Institutional Shareholders' Committee, as a means of reducing the costs of monitoring and intervening and addressing ‘free rider’ problems.
Jonathan Charkham and Anne Simpson
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198292142
- eISBN:
- 9780191684876
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198292142.003.0014
- Subject:
- Business and Management, Corporate Governance and Accountability, Business History
This chapter examines the rise of the institutions. The term ‘institutions’ is used to describe all kinds of collective shareholdings. Included are both UK- and overseas-based investors in the ...
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This chapter examines the rise of the institutions. The term ‘institutions’ is used to describe all kinds of collective shareholdings. Included are both UK- and overseas-based investors in the following categories: insurance companies and pension funds, investment trusts and unit trusts, and the fund managers employed to invest on their behalf. In addition, there are stockbrokers and the trustee departments of banks, which, although relatively small, do hold shares on behalf of their clients. What distinguishes these institutions from other shareholders is that they are investing money on behalf of others: this puts them in a fiduciary role, which imposes various duties under the principles of trust law.Less
This chapter examines the rise of the institutions. The term ‘institutions’ is used to describe all kinds of collective shareholdings. Included are both UK- and overseas-based investors in the following categories: insurance companies and pension funds, investment trusts and unit trusts, and the fund managers employed to invest on their behalf. In addition, there are stockbrokers and the trustee departments of banks, which, although relatively small, do hold shares on behalf of their clients. What distinguishes these institutions from other shareholders is that they are investing money on behalf of others: this puts them in a fiduciary role, which imposes various duties under the principles of trust law.
Javier Santiso
- Published in print:
- 2013
- Published Online:
- January 2014
- ISBN:
- 9780262019002
- eISBN:
- 9780262313704
- Item type:
- book
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262019002.001.0001
- Subject:
- Business and Management, Finance, Accounting, and Banking
Politics matter for financial markets and financial markets matter for politics, and nowhere is this relationship more apparent than in emerging markets. This book investigates the links between ...
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Politics matter for financial markets and financial markets matter for politics, and nowhere is this relationship more apparent than in emerging markets. This book investigates the links between politics and finance in countries that have recently experienced both economic and democratic transitions. It focuses on elections, investigating whether there is a “democratic premium”—whether financial markets and investors tend to react positively to elections in emerging markets. Special attention is devoted to Latin America, where over the last three decades many countries became democracies, with regular elections, just as they also became open economies dependent on foreign capital and dominated bond markets. The analysis draws on a unique set of primary databases covering an entire decade: more than 5,000 bank and fund manager portfolio recommendations on emerging markets. The book examines the trajectory of Brazil, for example, through its presidential elections of 2002, 2006, and 2010 and finds a decoupling of financial and political cycles that occurred also in many other emerging economies. It charts this evolution through the behavior of brokers, analysts, fund managers, and bankers. Ironically, while some emerging markets have decoupled politics and finance, in the wake of the 2008–2012 financial crisis many developed economies (Europe and the United States) have experienced a recoupling between finance and politics.Less
Politics matter for financial markets and financial markets matter for politics, and nowhere is this relationship more apparent than in emerging markets. This book investigates the links between politics and finance in countries that have recently experienced both economic and democratic transitions. It focuses on elections, investigating whether there is a “democratic premium”—whether financial markets and investors tend to react positively to elections in emerging markets. Special attention is devoted to Latin America, where over the last three decades many countries became democracies, with regular elections, just as they also became open economies dependent on foreign capital and dominated bond markets. The analysis draws on a unique set of primary databases covering an entire decade: more than 5,000 bank and fund manager portfolio recommendations on emerging markets. The book examines the trajectory of Brazil, for example, through its presidential elections of 2002, 2006, and 2010 and finds a decoupling of financial and political cycles that occurred also in many other emerging economies. It charts this evolution through the behavior of brokers, analysts, fund managers, and bankers. Ironically, while some emerging markets have decoupled politics and finance, in the wake of the 2008–2012 financial crisis many developed economies (Europe and the United States) have experienced a recoupling between finance and politics.
Douglas Cumming, Na Dai, and Sofia A. Johan
- Published in print:
- 2013
- Published Online:
- May 2013
- ISBN:
- 9780199862566
- eISBN:
- 9780199332762
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199862566.003.0008
- Subject:
- Economics and Finance, Financial Economics
Chapter 8 addresses the issue of whether hedge fund regulation mitigates or exacerbates the tendency of fund managers to misreport returns. By examining cross-country evidence on misreported returns, ...
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Chapter 8 addresses the issue of whether hedge fund regulation mitigates or exacerbates the tendency of fund managers to misreport returns. By examining cross-country evidence on misreported returns, it is possible to infer by holding other factors constant the impact of international differences on hedge fund regulation on the propensity to misreport returns. Further, the chapter examines and calculates explicitly whether it pays to misreport.Less
Chapter 8 addresses the issue of whether hedge fund regulation mitigates or exacerbates the tendency of fund managers to misreport returns. By examining cross-country evidence on misreported returns, it is possible to infer by holding other factors constant the impact of international differences on hedge fund regulation on the propensity to misreport returns. Further, the chapter examines and calculates explicitly whether it pays to misreport.
Jonathan Charkham and Anne Simpson
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198292142
- eISBN:
- 9780191684876
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198292142.003.0016
- Subject:
- Business and Management, Corporate Governance and Accountability, Business History
Against the background of existing or developing obligations and the conclusion that many shares are under the effective control of a relatively small group of fund managers, the question to be asked ...
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Against the background of existing or developing obligations and the conclusion that many shares are under the effective control of a relatively small group of fund managers, the question to be asked concerns what strategies are open to them. If they are in-house, what strategy can they sell to their own management/board? If they are professional fund managers what strategy can they sell to the trustees to whom they look for business or to the consultants advising them? This chapter discusses the three main types which have an impact on corporate governance: active investing, value investing, and indexation.Less
Against the background of existing or developing obligations and the conclusion that many shares are under the effective control of a relatively small group of fund managers, the question to be asked concerns what strategies are open to them. If they are in-house, what strategy can they sell to their own management/board? If they are professional fund managers what strategy can they sell to the trustees to whom they look for business or to the consultants advising them? This chapter discusses the three main types which have an impact on corporate governance: active investing, value investing, and indexation.
Javier Santiso
- Published in print:
- 2013
- Published Online:
- January 2014
- ISBN:
- 9780262019002
- eISBN:
- 9780262313704
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262019002.003.0004
- Subject:
- Business and Management, Finance, Accounting, and Banking
Portfolio fund managers incorporate all types of economic, social, and political information in their investment decisions, and evaluate risks and uncertainties when they buy (or sell) a bond or ...
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Portfolio fund managers incorporate all types of economic, social, and political information in their investment decisions, and evaluate risks and uncertainties when they buy (or sell) a bond or stock. Through exploring fund manager asset allocation databases, this chapter looks at the ways investments in equities and bonds are affected by emerging market political events such as elections, and changes in the level of democracy. Several hypotheses on the link between finance and politics are tested in this chapter, by combining information from a database of portfolio flows towards emerging markets, with election and democracy information.Less
Portfolio fund managers incorporate all types of economic, social, and political information in their investment decisions, and evaluate risks and uncertainties when they buy (or sell) a bond or stock. Through exploring fund manager asset allocation databases, this chapter looks at the ways investments in equities and bonds are affected by emerging market political events such as elections, and changes in the level of democracy. Several hypotheses on the link between finance and politics are tested in this chapter, by combining information from a database of portfolio flows towards emerging markets, with election and democracy information.
Douglas Cumming, Na Dai, and Sofia A. Johan
- Published in print:
- 2013
- Published Online:
- May 2013
- ISBN:
- 9780199862566
- eISBN:
- 9780199332762
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199862566.001.0001
- Subject:
- Economics and Finance, Financial Economics
A recurrent concern shared by market participants and regulators around the world is that the increasing size of the hedge fund industry coupled with potential agency problems, activist investment ...
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A recurrent concern shared by market participants and regulators around the world is that the increasing size of the hedge fund industry coupled with potential agency problems, activist investment practices and herding behavior may exacerbate financial instability. Having said that, although it is frequently suggested that hedge funds are unregulated, hedge funds are in fact regulated at least to some degree in every country around the world. It is therefore worthwhile to consider such differences in legal and institutional settings across countries as they directly affect the structure, governance and performance of hedge funds. In this book, we consider international data including data from the US, Asia and Europe, to gain a significant amount of insight into how hedge funds operate on a global basis. While hedge funds are hardly regulated in the US, other jurisdictions implement different and sometimes more onerous sets of regulatory requirements. As explained in the book, international differences in hedge fund regulation include, but are not limited to, minimum capitalization requirements, restrictions on the location of key service providers and different permissible distribution channels via private placements, banks, other regulated or non-regulated financial intermediaries, wrappers, investment managers and fund distribution companies. Essentially, hedge fund regulatory structures differ across jurisdictions, so maybe we should not tar and feather all hedge funds with the same brush.Less
A recurrent concern shared by market participants and regulators around the world is that the increasing size of the hedge fund industry coupled with potential agency problems, activist investment practices and herding behavior may exacerbate financial instability. Having said that, although it is frequently suggested that hedge funds are unregulated, hedge funds are in fact regulated at least to some degree in every country around the world. It is therefore worthwhile to consider such differences in legal and institutional settings across countries as they directly affect the structure, governance and performance of hedge funds. In this book, we consider international data including data from the US, Asia and Europe, to gain a significant amount of insight into how hedge funds operate on a global basis. While hedge funds are hardly regulated in the US, other jurisdictions implement different and sometimes more onerous sets of regulatory requirements. As explained in the book, international differences in hedge fund regulation include, but are not limited to, minimum capitalization requirements, restrictions on the location of key service providers and different permissible distribution channels via private placements, banks, other regulated or non-regulated financial intermediaries, wrappers, investment managers and fund distribution companies. Essentially, hedge fund regulatory structures differ across jurisdictions, so maybe we should not tar and feather all hedge funds with the same brush.
Ashrafee T. Hossain, Samir Saadi, and Maxim Treff
- Published in print:
- 2017
- Published Online:
- August 2017
- ISBN:
- 9780190607371
- eISBN:
- 9780190607401
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190607371.003.0004
- Subject:
- Economics and Finance, Financial Economics
Managerial skill is a key determinant of a hedge fund’s success. Identifying the key characteristics of successful managers is important because of a strong relation between hedge fund performance ...
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Managerial skill is a key determinant of a hedge fund’s success. Identifying the key characteristics of successful managers is important because of a strong relation between hedge fund performance and managerial skills. This chapter provides a brief history of some highly successful hedge fund managers as well as a discussion of the different demands of the hedge fund industry versus other pooled investments, such as mutual funds. Furthermore, the chapter examines the differences between hedge fund and mutual fund managers involving return expectations, performance measures, and compensation. Next the chapter explores the key characteristics that hedge fund managers should possess to be successful. Although some characteristics are easy to identify and measure, others are less so. The chapter also includes a detailed discussion of social versus human capital.Less
Managerial skill is a key determinant of a hedge fund’s success. Identifying the key characteristics of successful managers is important because of a strong relation between hedge fund performance and managerial skills. This chapter provides a brief history of some highly successful hedge fund managers as well as a discussion of the different demands of the hedge fund industry versus other pooled investments, such as mutual funds. Furthermore, the chapter examines the differences between hedge fund and mutual fund managers involving return expectations, performance measures, and compensation. Next the chapter explores the key characteristics that hedge fund managers should possess to be successful. Although some characteristics are easy to identify and measure, others are less so. The chapter also includes a detailed discussion of social versus human capital.
Dean P. Foster and H. Peyton Young
- Published in print:
- 2014
- Published Online:
- November 2015
- ISBN:
- 9780231160155
- eISBN:
- 9780231504324
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231160155.003.0015
- Subject:
- Economics and Finance, Public and Welfare
This chapter discusses risks of investing in hedge funds. Investors are not allowed to know how hedge funds work, every fund is different, and they offer no warranties. In fact, it is quite easy for ...
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This chapter discusses risks of investing in hedge funds. Investors are not allowed to know how hedge funds work, every fund is different, and they offer no warranties. In fact, it is quite easy for a hedge fund manager to “fake” high performance over an extended period of time without getting caught. Hedge fund managers get paid for making bets that put their investors at risk, while taking very little risk themselves. If the fund blows up, the investors cannot tell whether it was due to bad management or just bad luck. However, some steps can and should be taken toward protecting investors. All hedge funds should be required to register as soon as they are established and to report their returns on a regular basis. Such tracking would allow potential investors to study the records. Alternatively, managers could guarantee that losses not exceed a certain level, similar to a car manufacturer offering a warranty.Less
This chapter discusses risks of investing in hedge funds. Investors are not allowed to know how hedge funds work, every fund is different, and they offer no warranties. In fact, it is quite easy for a hedge fund manager to “fake” high performance over an extended period of time without getting caught. Hedge fund managers get paid for making bets that put their investors at risk, while taking very little risk themselves. If the fund blows up, the investors cannot tell whether it was due to bad management or just bad luck. However, some steps can and should be taken toward protecting investors. All hedge funds should be required to register as soon as they are established and to report their returns on a regular basis. Such tracking would allow potential investors to study the records. Alternatively, managers could guarantee that losses not exceed a certain level, similar to a car manufacturer offering a warranty.
Yue Chim Richard Wong
- Published in print:
- 2013
- Published Online:
- January 2014
- ISBN:
- 9789888139446
- eISBN:
- 9789888180349
- Item type:
- chapter
- Publisher:
- Hong Kong University Press
- DOI:
- 10.5790/hongkong/9789888139446.003.0018
- Subject:
- Society and Culture, Asian Studies
This chapter centres on social security systems and their merits and deficiencies. Singapore's Central Provident Fund is not common among social schemes in that it does not include redistribution ...
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This chapter centres on social security systems and their merits and deficiencies. Singapore's Central Provident Fund is not common among social schemes in that it does not include redistribution features, and it yields merely negligible real returns after taking into account the inflation rate. The Chilean scheme managed to rebound swiftly following the attack of the global financial tsunami, and this can indeed be ascribed to keen competition among fund managers for the savings of workers. The regulations of Hong Kong's Mandatory Provident Fund (MPF) are by no means free from flaws, and they seriously impede effective competition. Employee fund portability is instrumental in triggering competition among fund management providers, and MPF administration has to be largely simplified as well.Less
This chapter centres on social security systems and their merits and deficiencies. Singapore's Central Provident Fund is not common among social schemes in that it does not include redistribution features, and it yields merely negligible real returns after taking into account the inflation rate. The Chilean scheme managed to rebound swiftly following the attack of the global financial tsunami, and this can indeed be ascribed to keen competition among fund managers for the savings of workers. The regulations of Hong Kong's Mandatory Provident Fund (MPF) are by no means free from flaws, and they seriously impede effective competition. Employee fund portability is instrumental in triggering competition among fund management providers, and MPF administration has to be largely simplified as well.
Lamia Chourou, Ashrafee T. Hossain, and Samir Saadi
- Published in print:
- 2017
- Published Online:
- August 2017
- ISBN:
- 9780190607371
- eISBN:
- 9780190607401
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190607371.003.0006
- Subject:
- Economics and Finance, Financial Economics
Hedge fund governance has attracted much interest since the financial crisis of 2007–2008 resulting in a dramatic shift in hedge funds’ shareholder composition, from high-net-worth individual ...
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Hedge fund governance has attracted much interest since the financial crisis of 2007–2008 resulting in a dramatic shift in hedge funds’ shareholder composition, from high-net-worth individual investors to active institutional investors. The crisis, coupled with some major scandals, including Bernard Madoff’s multi-billion-dollar Ponzi scheme and the Weavering Capital fraud, uncovered poor governance practices in the hedge fund industry. Fund managers now face serious governance challenges that tend to focus on governance arrangements and independence of fund boards. Maintaining quality governance rules in hedge funds is critical for the industry. Evidence suggests that having sound and transparent governance practices is in the best interests of hedge fund managers. This chapter first addresses the development of corporate governance, followed by an analysis of hedge fund governance. Next the chapter explores the ongoing governance debates facing the industry. The chapter ends by discussing the changing nature of hedge fund governance.Less
Hedge fund governance has attracted much interest since the financial crisis of 2007–2008 resulting in a dramatic shift in hedge funds’ shareholder composition, from high-net-worth individual investors to active institutional investors. The crisis, coupled with some major scandals, including Bernard Madoff’s multi-billion-dollar Ponzi scheme and the Weavering Capital fraud, uncovered poor governance practices in the hedge fund industry. Fund managers now face serious governance challenges that tend to focus on governance arrangements and independence of fund boards. Maintaining quality governance rules in hedge funds is critical for the industry. Evidence suggests that having sound and transparent governance practices is in the best interests of hedge fund managers. This chapter first addresses the development of corporate governance, followed by an analysis of hedge fund governance. Next the chapter explores the ongoing governance debates facing the industry. The chapter ends by discussing the changing nature of hedge fund governance.
Shari Spiegel
- Published in print:
- 2011
- Published Online:
- November 2015
- ISBN:
- 9780231158633
- eISBN:
- 9780231530286
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231158633.003.0015
- Subject:
- Economics and Finance, Financial Economics
This chapter addresses the problem with relying on short-term market indexes as benchmarks for performance of long-term-oriented sovereign wealth funds (SWFs). It argues that SWFs are ideally placed ...
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This chapter addresses the problem with relying on short-term market indexes as benchmarks for performance of long-term-oriented sovereign wealth funds (SWFs). It argues that SWFs are ideally placed to earn a liquidity premium demanded by more short-term-oriented investors in the market. However, it cautions against a general prescription of seeking to sell insurance all the time against any kind of risk, since this would be a recipe for disastrous investments. When to provide liquidity and when not to requires judgment. It also means that sometimes market indexes are appropriate benchmarks and sometimes they are not. Faced with this dilemma, the chapter proposes that SWF managers be given broad discretion in the fund's investment policy, but that managers should be compensated based on long-term performance of the fund. It also argues against the high-powered incentive pay that has become the norm in the private equity and hedge fund sectors, and instead favors the enforcement of clawbacks should the fund perform poorly in the long run.Less
This chapter addresses the problem with relying on short-term market indexes as benchmarks for performance of long-term-oriented sovereign wealth funds (SWFs). It argues that SWFs are ideally placed to earn a liquidity premium demanded by more short-term-oriented investors in the market. However, it cautions against a general prescription of seeking to sell insurance all the time against any kind of risk, since this would be a recipe for disastrous investments. When to provide liquidity and when not to requires judgment. It also means that sometimes market indexes are appropriate benchmarks and sometimes they are not. Faced with this dilemma, the chapter proposes that SWF managers be given broad discretion in the fund's investment policy, but that managers should be compensated based on long-term performance of the fund. It also argues against the high-powered incentive pay that has become the norm in the private equity and hedge fund sectors, and instead favors the enforcement of clawbacks should the fund perform poorly in the long run.
J. P. Charkham
- Published in print:
- 1994
- Published Online:
- January 2015
- ISBN:
- 9780198287889
- eISBN:
- 9780191828867
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198287889.003.0006
- Subject:
- Economics and Finance, Financial Economics
This chapter argues that the role of institutional investors is crucial in matters of corporate accountability. After all, these investors, more than anyone, guard the savings of the people. Thus, ...
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This chapter argues that the role of institutional investors is crucial in matters of corporate accountability. After all, these investors, more than anyone, guard the savings of the people. Thus, the chapter provides an overview of two types of institutional investing: types A and B, with the former approach being the ideal. The chapter then explores the motivations surrounding the preference of most fund managers and trustees of one type to another. It re-examines the type A approach under such issues as free-rider problems, the internationalization of stock-markets, insider trading, responding to bids, and the fact that the type B process has become so engrained as to make change difficult.Less
This chapter argues that the role of institutional investors is crucial in matters of corporate accountability. After all, these investors, more than anyone, guard the savings of the people. Thus, the chapter provides an overview of two types of institutional investing: types A and B, with the former approach being the ideal. The chapter then explores the motivations surrounding the preference of most fund managers and trustees of one type to another. It re-examines the type A approach under such issues as free-rider problems, the internationalization of stock-markets, insider trading, responding to bids, and the fact that the type B process has become so engrained as to make change difficult.
Michael Yogg
- Published in print:
- 2014
- Published Online:
- November 2015
- ISBN:
- 9780231167468
- eISBN:
- 9780231537025
- Item type:
- book
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231167468.001.0001
- Subject:
- Economics and Finance, History of Economic Thought
Paul Cabot (1898–1994) was an innovative mutual fund manager and executive known for his strong character, charismatic personality, and trendsetting financial achievements. Iconoclastic and ...
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Paul Cabot (1898–1994) was an innovative mutual fund manager and executive known for his strong character, charismatic personality, and trendsetting financial achievements. Iconoclastic and rebellious, Cabot broke free from the Boston Brahmin trustee mold to pursue new ways of investing and serving investment clients. Cabot founded one of the first mutual funds—State Street Investment Corporation—in the early 1920s, campaigned against the corrupt practices of certain other funds in the late 1920s, and lobbied on behalf of key New Deal securities legislation in the 1930s. As Harvard University treasurer, he increased the allocation of the endowment to equities just in time for the bull market of the 1950s, and as a corporate director in the 1960s he campaigned against conglomerates’ abusive takeover strategies. This book details the secrets behind Cabot’s extraordinary success and relates the life of an extraordinary man. Cabot pioneered the use of fundamental stock analysis and was likely the first to take up the progressive practice of interviewing company managements. His accomplishments all stemmed from his passion for facts, finance, and creative thinking, as well as his unbreakable will, facets the book illuminates through privileged access to Cabot’s papers and a wealth of interviews.Less
Paul Cabot (1898–1994) was an innovative mutual fund manager and executive known for his strong character, charismatic personality, and trendsetting financial achievements. Iconoclastic and rebellious, Cabot broke free from the Boston Brahmin trustee mold to pursue new ways of investing and serving investment clients. Cabot founded one of the first mutual funds—State Street Investment Corporation—in the early 1920s, campaigned against the corrupt practices of certain other funds in the late 1920s, and lobbied on behalf of key New Deal securities legislation in the 1930s. As Harvard University treasurer, he increased the allocation of the endowment to equities just in time for the bull market of the 1950s, and as a corporate director in the 1960s he campaigned against conglomerates’ abusive takeover strategies. This book details the secrets behind Cabot’s extraordinary success and relates the life of an extraordinary man. Cabot pioneered the use of fundamental stock analysis and was likely the first to take up the progressive practice of interviewing company managements. His accomplishments all stemmed from his passion for facts, finance, and creative thinking, as well as his unbreakable will, facets the book illuminates through privileged access to Cabot’s papers and a wealth of interviews.
Joseph E. Stiglitz
- Published in print:
- 2011
- Published Online:
- November 2015
- ISBN:
- 9780231158633
- eISBN:
- 9780231530286
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231158633.003.0064
- Subject:
- Economics and Finance, Financial Economics
This chapter presents reflections about the conference and directions for future research. It begins with a general observation about the impressive research that has been done to help us understand ...
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This chapter presents reflections about the conference and directions for future research. It begins with a general observation about the impressive research that has been done to help us understand what sovereign wealth funds (SWFs) have been doing and to provide insight into what these funds could or should do. It then discusses some major theoretical and analytical challenges. It suggests that research should focus on how SWFs and other long-term investors can unshackle themselves from the thinking imposed by short-term markets. It also highlights the desirability of using some of the capital of SWFs for investments that yield high social returns from a global perspective.Less
This chapter presents reflections about the conference and directions for future research. It begins with a general observation about the impressive research that has been done to help us understand what sovereign wealth funds (SWFs) have been doing and to provide insight into what these funds could or should do. It then discusses some major theoretical and analytical challenges. It suggests that research should focus on how SWFs and other long-term investors can unshackle themselves from the thinking imposed by short-term markets. It also highlights the desirability of using some of the capital of SWFs for investments that yield high social returns from a global perspective.
Eddy Wymeersch, Klaus J. Hopt, and Guido Ferrarini (eds)
- Published in print:
- 2012
- Published Online:
- April 2015
- ISBN:
- 9780199660902
- eISBN:
- 9780191806902
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:osobl/9780199660902.001.0001
- Subject:
- Law, Company and Commercial Law
This comprehensive account of financial regulation and supervision in times of crisis analyses the complex changes under way regarding the new financial regulatory structures in the EU. Focusing on ...
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This comprehensive account of financial regulation and supervision in times of crisis analyses the complex changes under way regarding the new financial regulatory structures in the EU. Focusing on the organisation of financial supervision, it deals with the background to the reforms, the architecture of the regulatory system, the likely implications for the financial institutions and the challenge of international co-operation. Changes in the US have been heavily criticised and in Europe a brand new regulatory system with three new regulatory agencies and a systemic risk board has been developed. National systems are in the process of being updated. International cooperation, although still difficult, has made progress, with the Financial Stability Board now acting on behalf of the G20. Central bank cooperation has improved significantly and in the meantime, sectoral regulations are being adapted in full speed, such as Basel III, Alternative Investment Fund Managers Directive (AIFMD), Markets in Financial Instruments Directive (MiFID) and many others. This book gives an overall view of these complex changes. The first section of the book provides an assessment of the reforms and considers the background to their making. In the section on regulatory structure there is analysis of the new regulatory bodies, their complex competences and actions. The book also takes a critical look at their likely effectiveness. The final section considers the actual implementation of the new rules in a cross-border context.Less
This comprehensive account of financial regulation and supervision in times of crisis analyses the complex changes under way regarding the new financial regulatory structures in the EU. Focusing on the organisation of financial supervision, it deals with the background to the reforms, the architecture of the regulatory system, the likely implications for the financial institutions and the challenge of international co-operation. Changes in the US have been heavily criticised and in Europe a brand new regulatory system with three new regulatory agencies and a systemic risk board has been developed. National systems are in the process of being updated. International cooperation, although still difficult, has made progress, with the Financial Stability Board now acting on behalf of the G20. Central bank cooperation has improved significantly and in the meantime, sectoral regulations are being adapted in full speed, such as Basel III, Alternative Investment Fund Managers Directive (AIFMD), Markets in Financial Instruments Directive (MiFID) and many others. This book gives an overall view of these complex changes. The first section of the book provides an assessment of the reforms and considers the background to their making. In the section on regulatory structure there is analysis of the new regulatory bodies, their complex competences and actions. The book also takes a critical look at their likely effectiveness. The final section considers the actual implementation of the new rules in a cross-border context.
