Do Hedge Funds Create Value? 3 Lessons From Danone And Unilever

Hedge funds do not have to disclose to the SEC any intentions to exert control of a company if they own less than 5% of a company. These small stakes can still have huge impact, as we have seen at corporate giants like Exxon and Nestle. Even small hedge funds can have significant influence if…

Activist Stewardship

Highlights from a new article on hedge fund activism on behalf of long-term shareholder value, from Robert Eccles (Oxford University), Aeisha Mastagni (CalSTRS), and Kirsty Jenkinson (CalSTRS): The time has come for “activist stewardship.” Simply put, this means putting the skills and techniques of activist hedge funds to work where a company’s financial performance is…

A $22.7 Trillian Overcharge: The Actual Cost of Finance

A new report from the Roosevelt Institute shows that the hidden costs of our financial services imposed as much as $22.7 TRILLLION of unjustified costs on our economy between 1990-2023. Gerald Epstein and Juan Antonio Montecino measured: three components: (1) rents, or excess profits; (2) misallocation costs, or the price of diverting resources away from…

William Birdthistle on What’s Wrong with Mutual Funds and How to Fix It

If I could assign every politician running for office this year one book to read, it would be Professor William Birdthistle’s Empire of the Funds, the story the avalanche of money poured into mutual funds and the staggering inadequacy of the results as the baby boomers approach retirement. He calls it “the richest and riskiest…