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jerryking : institutional_investors   33

Big Investors Don’t Want Wall Street Analysts Snooping on Them - WSJ
June 14, 2018 | WSJ | By Telis Demos

the research shops are finding ways to make up the lost revenue, turning to readership data. They do say that information is power, and in this case I guess the banks have the power again.
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I think the WSJ is conflating two very different issues. The privacy concerns apply on ethical (possibly criminal) grounds rather than moral ones, in the example given of hedge funds asking a broker to provide aggregated readership data. It's very hard to imagine a responsible research provider doing this. The other piece - the tracking of utilization of research product is exactly what brokers need to do to ensure they are being paid appropriately for the level of service a client is receiving. MiFID 2 has and will continue to put pressure on how much research clients consume, and to precisely account for how much they pay for it. Transparency is a two-way street. A 90-day embargo on the readership data is a simple solution, as quarterly/bi-annual reviews should suffice to true-up the bank/client ledger.

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behavioural_data  investment_research  institutional_investors  reading  research_analysts  snooping  traders  Wall_Street  buy_side  informational_advantages  privacy  transparency 
june 2018 by jerryking
Al Gore: sustainability is history’s biggest investment opportunity
Owen Walker YESTERDAY

Fourteen years ago Mr Gore co-founded a sustainability-focused fund management company with David Blood, former head of Goldman Sachs Asset Management. Rather than the colourful “Blood & Gore Partners”, they named the business Generation Investment Management. The London-based group has since attracted $19bn in assets, managing money for institutional investors and affluent individuals, mainly in North America and Europe....Mr Gore has just given a presentation to UBS wealth advisers at the bank’s annual investment get-together. Unlike most of the PowerPoint-packed presentations, Mr Gore’s delivery is a glitzy affair, with dramatic theme music and video clips of crashing glaciers. His talk receives a standing ovation and he is mobbed for more selfies at the end....Generation lists large public sector investors among its clients, such as Calstrs, the $223bn Californian teachers’ pension plan, the $192bn New York State pension plan and the UK’s Environment Agency retirement fund. It also manages money for wealthy individuals but has stopped short of opening to retail investors. Almost all its assets are run in equity mandates, yet $1bn is invested in private equity
Al_Gore  sustainability  asset_management  institutional_investors  investors  green  climate_change 
april 2018 by jerryking
BlackRock’s Message: Contribute to Society, or Risk Losing Our Support - The New York Times
Andrew Ross Sorkin

DEALBOOK JAN. 15, 2018

Larry Fink, founder and CEO of the investment firm BlackRock, is going to inform business leaders that their companies need to do more than make profits — they need to contribute to society as well if they want to receive the support of BlackRock.

Mr. Fink has the clout to make this kind of demand: His firm manages more than $6 trillion in investments through 401(k) plans, ETFs and mutual funds, making it the largest investor in the world, and he has an outsize influence on whether directors are voted on and off boards.

“Society is demanding that companies, both public and private, serve a social purpose,” he wrote in a draft of the letter that was shared with me. “To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society.”

It may be a watershed moment on Wall Street, one that raises all sorts of questions about the very nature of capitalism. ...“It is huge for an institutional investor to take this position across its portfolio.‘‘

In a candid assessment of what’s happening in the business world — and perhaps taking a veiled shot at Washington at the same time — Mr. Fink wrote that he is seeing “many governments failing to prepare for the future, on issues ranging from retirement and infrastructure to automation and worker retraining.” He added, “As a result, society increasingly is turning to the private sector and asking that companies respond to broader societal challenges.” Mr. Fink’s declaration is different because his constituency in this case is the business community itself. It pits him, to some degree, against many of the companies that he’s invested in, which hold the view that their only duty is to produce profits for their shareholders, an argument long espoused by economists like Milton Friedman.
Laurence_Fink  BlackRock  corporate_social_responsibility  Milton_Friedman  shareholder_activism  institutional_investors 
january 2018 by jerryking
BlackRock bets on Aladdin as genie of growth
MAY 18, 2017 | FT | Attracta Mooney.

Aladdin, a technology system developed by BlackRock, the world’s largest asset manager, is also clever. It analyses the risks of investing in particular stocks, figures out where to sell bonds to get the best prices, and tracks those trades. And it is wily too, combing through huge data sets to find vital pieces of information for investors.....Launched in in 1988, when it was developed as an internal risk tool for BlackRock employees, Aladdin has become bigger, better and far more influential. It is now one of the best-known pieces of technology in the fund industry and is widely used by BlackRock’s rivals, including Deutsche Asset Management, the $733bn investment house, and Schroders, the UK’s largest listed fund manager.

But as Aladdin — which stands for Asset Liability and Debt and Derivatives Investment Network — has grown, concerns have mounted about its influence on markets. There are also questions about whether Aladdin can maintain or increase its hold on the asset management industry as rival technologies emerge.....with more and more investors using Aladdin, there are concerns about its impact on markets. The argument is that if trillions of dollars are being managed by people using the same risk system, those individuals may be more likely to make the same mistakes. i.e. Aladdin may increase systemic risk!!...Aladdin has a 9 per cent share of the 250 largest asset managers and a 15 per cent share of the insurance market, according to Credit Suisse, the Swiss bank. .......Many asset managers have recently begun the slow process of overhauling their technology systems after years of neglect. Previously, fund houses often had hundreds of different systems, but Aladdin and similar enterprise platforms allow businesses to cut out huge chunks of IT, reducing costs and jobs in the process.

At the same time, running money has become more complex and there is more regulatory scrutiny of investment decisions. This has meant that fund houses have been forced to assess how technology can help their investment processes.

“Money management is very tricky these days. Any tool that can help you with decisions is going to be highly in demand,”
........Under plans by Larry Fink, BlackRock’s chief executive, Aladdin will become an even more important source of cash for the fund giant. Mr Fink recently said that his goal is for Aladdin and the wider BlackRock solutions business to account for about 30 per cent of revenues in five years, compared with 7 per cent currently.......Even if there is a stumble in demand, BlackRock is already eyeing up other avenues for Aladdin.

In the past two years, it began promoting Aladdin, which comprises 25m lines of code, in the retail investment space, targeting wealth managers and brokers.

Last week, UBS Wealth Management Americas became the first wealth manager to say it will use Aladdin for risk management and portfolio construction......“Technology has always been a key differentiator for BlackRock. It is more essential to our business than ever before. We believe technology can transform our industry,” he said.

.......
Aladdin  asset_management  BlackRock  institutional_investors  Laurence_Fink  wealth_management  systemic_risks  order_management_system  algorithms  platforms 
january 2018 by jerryking
An Activist Investment in Whole Foods Exposes Shifting Power on Wall St. - The New York Times
APRIL 25, 2017 | NYT | By ALEXANDRA STEVENSON.

Neuberger Berman has eschewed its nearly 80-year-old tactic of playing nice (i.e. buy and hold stocks, sit back, and hope for the best), turning to the bare-knuckled world of activist investors made famous by the likes of Carl C. Icahn and William A. Ackman. Last year, as Neuberger Berman’s roughly $200 million investment in Whole Foods Market languished, the firm quietly approached some hedge funds and urged them to agitate for change at the high-end grocer. Two weeks ago, Jana Partners took up the fight......Neuberger Berman’s behind-the-scenes campaign to shake up Whole Foods is the latest example of a dynamic that is upending relations between public companies and the big investors that own their stock.....a reflection of the shifting balance of power on Wall Street....Traditional money managers in search of market-beating returns are demanding a seat at the table, turning to activists for help and even employing some hedge fund tricks of their own. And activists, once the black sheep of the investment world, are now accepted as regular, if meddlesome, investors. ....[Activist investors], she added, “[are an] important ‘check and balance’ on management that has lost its way.”....Neuberger Berman executives prepared an inch-thick presentation--a thorough critique--the kind of document usually produced by activists.....failures in how Whole Foods handled its brand development, and to what it said were customer service deficiencies and a poor strategy for distribution......Relations between institutional investors and activists have evolved in recent years, and it is not unheard-of for big investors to support activists who have set their sights on a high-profile company. ..... be careful of what you wish for, Neuberger Berman discovered that utilizing board seats on an underperforming portfolio company can be "expensive and time-consuming.”.....it is less common for an institutional investor to share its work on a specific target with activists in the way Neuberger Berman did with Whole Foods....There is even a term for the interplay: “R.F.A.s” or “requests for activism.”....Institutional investors do not make investments predicated on an activist showing up.
Wall_Street  money_management  shareholder_activism  beat_the_market  hedge_funds  Whole_Foods  Jana_Partners  Neuberger_Berman  institutional_investors  checks_and_balances  Carl_Icahn  William_Ackman  boards_&_directors_&_governance 
april 2017 by jerryking
BlackRock Bets on Robots to Improve Its Stock Picking - WSJ
By SARAH KROUSE
Updated March 28, 2017

The firm is offering its Main Street customers lower-cost quantitative stock funds that rely on data and computer systems to make predictions, an investment option previously available only to large institutional investors. Some existing funds will merge, get new investment mandates or close. The changes are the most significant attempt yet to rejuvenate a unit that has long lagged behind rivals in performance......The author of the company’s new strategy is former Canada Pension Plan Investment Board Chief Executive Mark Wiseman, who was hired last year to turn around the stock-picking business. The effort is the first test for Mr. Wiseman, viewed by some company observers as a potential successor to Chief Executive Laurence Fink......Many other firms that specialize in handpicking stocks are also struggling with low returns and shifting investor tastes. Since the 2008 financial crisis, clients across the money-management industry have moved hundreds of billions of dollars to lower-cost funds that track indexes, known as passive investment funds, instead of aiming to beat the market.
BlackRock  stock_picking  automation  layoffs  asset_management  institutional_investors  ETFs  Mark_Wiseman  Laurence_Fink  CPPIB  robotics  quantitative  active_investing  passive_investing  shifting_tastes  money_management  beat_the_market 
march 2017 by jerryking
Bill Gross Thinks the End Is Near - NYTimes.com
MAY 22, 2015

Reminiscences of a Stock Operator[edit]
The popular book Reminiscences of a Stock Operator, by Edwin Lefèvre, reflects on many of those lessons, and is in effect a financial memoir of Livermore (a pseudonym is used) starting with the bucket shop days and ending in the 1920s before the crash. The book has an avid following in the investment community, and is still in print. There is some speculation that this partnership between the two men was not their first collaboration. Since Lefèvre was a writer and journalist, it is thought that he was one of the friendly newspapermen that Livermore employed for both information and planted articles. Livermore himself wrote a less widely read book, "How to trade in stocks; the Livermore formula for combining time element and price". It was published in 1940, the same year he committed suicide.
Bill_Gross  bonds  PIMCO  investors  Second_Acts  money_management  books  institutional_investors  asset_management 
may 2015 by jerryking
BlackRock’s Chief, Laurence Fink, Urges Other C.E.O.s to Stop Being So Nice to Investors - NYTimes.com
APRIL 13, 2015
Continue reading the main storyVideo

PLAY VIDEO|3:24
BlackRock Chief on ‘Gambling Society’
BlackRock Chief on ‘Gambling Society’
Laurence D. Fink, chief executive of the largest asset manager in the world, warns that too many C.E.O.’s have been trying to return money to investors through dividends and buying back stock By CNBC on Publish Date April 14, 2015. Photo by Mark Lennihan/Associated Press.

Andrew Ross Sorkin
Laurence_Fink  CEOs  asset_management  Andrew_Sorkin  institutional_investors  Wall_Street  shareholder_activism  long-term  BlackRock 
april 2015 by jerryking
White House to Begin $10 Billion Rural Investment Fund - NYTimes.com
By ALEXANDRA STEVENSON JULY 24, 2014

The White House Rural Council will announce plans on Thursday to start a $10 billion investment fund that will give pension funds and large investors the opportunity to invest in agricultural projects. Those include wastewater systems, energy projects and infrastructure development in rural America.

“We’re the eHarmony.com of infrastructure and business investment,”...The move comes as pension funds and institutional investors, faced with few investment opportunities that yield high returns in the face of low interest rates, have begun to shift large amounts of money into less traditional investments that promise bigger returns like hedge funds and private equity firms.
farmland  agriculture  agribusiness  rural  alternative_investments  private_equity  infrastructure  investing  energy  wastewater-treatment  institutional_investors  pension_funds 
july 2014 by jerryking
China Investment Corp. revamps Canadian office - The Globe and Mail
BOYD ERMAN
China Investment Corp. revamps Canadian office Add to ...
Subscribers Only

The Globe and Mail

Published Wednesday, Dec. 18 2013
Boyd_Erman  China  China_rising  Bay_Street  money_management  institutional_investors  Felix_Chee  Canada  FDI  sovereign_wealth_funds  CIC 
december 2013 by jerryking
Carlyle Group buys Toronto alternative asset manager - The Globe and Mail
Nov. 26 2013 | The Globe and Mail | Boyd Erman.
U.S. private equity behemoth Carlyle Group LP is buying a Toronto-based asset manager that specializes in picking hedge funds for huge institutional investors, yet another sign of Canada’s growing influence in the business of running alternative assets.

Carlyle said Tuesday that it has agreed to buy Diversified Global Asset Management Corp., an employee owned firm that oversees assets of $6.7-billion (U.S.), for about $103-million

DGAM’s specialty is advising large investors such as pension funds and sovereign wealth funds on how to use hedge fund strategies to manage risk and increase returns.

Canada, particularly Toronto, has a reputation as a top centre for money management in pension circles, with institutions such as Ontario Teachers’ Pension Plan and Canada Pension Plan Investment Board running complex strategies using alternative investments – essentially, in-house hedge funds. DGAM helps clients do the same thing by building custom portfolios of hedge funds and investments.
Carlyle_Group  private_equity  Toronto  investors  pension_funds  sovereign_wealth_funds  alternative_investments  Boyd_Erman  asset_management  OTPP  CPPIB  money_management  risk-management  institutional_investors 
november 2013 by jerryking
Manulife launches new private markets group
Nov. 11 2013 | The Globe and Mail |JACQUELINE NELSON.

Manulife Financial Corp. is formally launching a new institutional investment business group after a year of building up assets and planning an expansion.

The business, called Manulife Asset Management Private Markets, manages $74-billion of its parent company’s $575-billion in funds under management. Management plans to grow that pool by seeking out new investors and deepening its focus on three target areas: commercial real estate equity, commercial mortgage lending and private placements.
Manulife  private_equity  institutional_investors  Bay_Street  commercial_real_estate  product_launches 
november 2013 by jerryking
With Huge War Chests, Activist Investors Tackle Big Companies - NYTimes.com
August 30, 2013, 9:01 pm 14 Comments
With Huge War Chests, Activist Investors Tackle Big Companies
By MICHAEL J. DE LA MERCED and JULIE CRESWELL

In the 1980s, corporate raiders like T. Boone Pickens and Carl C. Icahn engaged in hostile takeovers or leveraged buyouts of companies, or sought to be bought out themselves at a profit. (Some of yesterday’s raiders, like Mr. Icahn, are today’s more public-relations-friendly “activists.”) In the 1990s, big pension funds like the powerful California Public Employees’ Retirement System took up the mantle, pressing for change not only in corporate governance but also on social issues like doing business in apartheid-era South Africa and protecting the environment.

Unlike the raiders, the current activists contends they are fighting for the interests of shareholders. To that end, the activists most often seek to appoint allies to board seats to help fight against what they see as complacent management and to bring more discipline to companies.
shareholder_activism  large_companies  hedge_funds  Microsoft  William_Ackman  institutional_investors  Apple  money_management  T.Boone_Pickens 
september 2013 by jerryking
globeadvisor.com: Fairfax leads move to buy BlackBerry
August 13, 2013 | G&M | OMAR EL AKKAD
Investment company among potential suitors of struggling smartphone company that has put itself up for sale
Fairfax  BlackBerry  private_equity  Prem_Watsa  investors  institutional_investors 
august 2013 by jerryking
Land at centre of mega-quarry fight sold
July 18, 2013 | Globalnews.ca | By Heather Loney.

Bonnefield Financial – a Canadian farmland investment company -announced this week it had bought more than 2,600 hectares of land from Highland Companies.

Bonnefield said the Class 1 farmland would continue to be used for farming.

“Here we have Canadian investors, supporting Canadian farmers to ensure that one of our most precious resources – farmland – continues to be used for farming,” said Bonnefield president Tom Eisenhauer in a press release. “That’s the core of Bonnefield’s mission: farmland for farming. We look forward to working with local farmers who will operate this land on a long-term basis and to ensure that it is preserved and enhanced for farming use.”
farmland  agribusiness  hedge_funds  institutional_investors  farming 
july 2013 by jerryking
Rooftop Farms: Here to Stay or Passing Phase? | industrial - Equities.com
September 7, 2012 | National Real Estate Investor |Jennifer V. Hughes,

Steven Peck, president and founder of the industry association Green Roofs for Healthy Cities, estimates there are less than 20 rooftop agriculture sites now nationwide. Some are farms with layers of soil and crops and others use hydroponic greenhouses.

Rooftop farming has many upsides... The companies that install rooftop farms pay all costs of construction. Rooftop agriculture carries many of the same environmental benefits as traditional green roofs. Rooftop farms often capture waste heat from buildings to use in their greenhouses in winter times, says Kate Siskel, BrightFarms' marketing associate. That means you have to pay less to cool, say, a facility with industrial ovens or a heat-emitting data center.

Rooftop agriculture projects also usually set up a system to capture storm water run-off, Siskel says. They provide some of the same insulation as a traditional green roof, which saves on heating and cooling. Some roof farms can even contribute to a building's LEED certification.

Then, there is the fact that a rooftop farm is a tenant like any other in a commercial building. Several rooftop farming companies declined to say how much they pay in rent, but Peck says it varies from .50 to $2 per sq. ft. It's not a lot, but Peck notes, "right now they're getting zilch."

"Roof space is a valuable asset and we need to use those spaces," he says. "We need the commercial building industry to wake up and learn that their roofs can do a lot more for them and for their neighbors." ...Robert S. Best, executive vice president at Jones Lang LaSalle, says he still thinks it's a tough sell. There are no green roofs or rooftop farms within the JLL portfolio, even though the company is an environmental leader in many other ways.

Best says building owners worry about whether a green roof or roof farm would cause problems with the roof that would void the warranty. So many urban roofs are cluttered with cooling towers, elevator equipment and window-washing rigs, making it hard to find space.

"My main question would be, "Why?'" Best says. "To get all the equipment on the roof, to put in all the beds, it's such a major undertaking-is it really worth all the trouble?

"I think the reason you don't see a lot of it is that it's not worth all the trouble that a green roof brings with it, at least for the big commercial property owners to even think about," Best says.
institutional_investors  commercial_real_estate  greenhouses  hard_to_find  green_roofs  BrightFarms  farming  agriculture  fresh_produce  voids  upside 
april 2013 by jerryking
Understanding private investors
Nov 1. 2005 | European Venture Capital & Private Equity Journal | by Angela Somani.

Private equity has a reputation as an exclusive club for institutional investors and uber high net worth individuals among the private investment community. But there are ways for those private investors without millions in the bank to get access to the top~performing, big brand names. And the benefits of having such investors on board can work both ways. As the private equity industry becomes more appealing to private investors so more private equity funds will endeavor to accommodate their needs. The one thing fund managers need to remember is that private investors do need to be treated differently to the larger institutions investing in their funds. They may demand more attention and they may be investing smaller amounts of capital, but this does not necessarily mean they are of a lesser quality and often can offer more in terms of experience than a large financial institution.
private_equity  venture_capital  institutional_investors  trends  angels 
february 2013 by jerryking
Endowments: Ivory-towering infernos
Dec 11th 2008 | The Economist |From the print edition.

As Mr Swensen explains in his influential book, “Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment”, which was published in 2000, the “permanent” endowments of universities (and of some charitable foundations) meant that they could be the ultimate long-term investors, able to ride out market downturns and liquidity droughts.

By investing heavily in illiquid assets, rather than the publicly traded shares and bonds preferred by shorter-term investors, an institution with an unlimited time horizon would earn a substantial illiquidity premium.
Yale  Harvard  time_horizons  endowments  Colleges_&_Universities  illiquidity  alternative_investments  private_equity  institutional_investors  long-term  books 
february 2013 by jerryking
For Deals, Wall Street Goes East - NYTimes.com
September 28, 2011, 6:48 pm Mergers & Acquisitions | DealBook Column
For Deals, Wall Street Goes East
By ANDREW ROSS SORKIN

“The interest among Western institutional investors to getting exposure to China, Brazil and India is clear. It’s a big mind shift,” said Sarah Alexander, president of the Emerging Markets Private Equity Association. And she added, they’ve been looking farther afield. “You’ve got Indonesia on the map, Colombia, Peru.”
Andrew_Sorkin  Carlyle_Group  Wall_Street  private_equity  institutional_investors  emerging_markets  globalization  David_Rubenstein  dealmakers  Blackstone  frontier_markets 
september 2011 by jerryking
Venture Capital Investors, Lesson Learned, Do More Homework - NYTimes.com
By CLAIRE CAIN MILLER
August 9, 2011

the market for investing in tech start-ups remains white-hot. Still,
some investors are proceeding with extreme caution.

Saying they learned their lesson in the dot-com boom and bust, and the
2008 recession, the institutional investors — pension funds, university
endowments and foundations — that put money in venture capital funds are
more selectively choosing the firms in which they invest, doing
exhaustive research before handing over money, and in some cases driving
hard bargains for more favorable management fees and shares of profits.
cautionary_tales  venture_capital  vc  limited_partnerships  due_diligence  investment_research  Claire_Cain_Miller  institutional_investors  selectivity  pension_funds  endowments  foundations  lessons_learned  bubbles  economic_downturn 
august 2011 by jerryking
Failure Chronicles -
April 2011 Harvard Business Review by Roger McNamee,
Elevation Partners.

The idea behind Silver Lake was to create a new kind of private equity.
Instead of a typical financial engineering strategy of using high
leverage to squeeze cash out of mature companies, we focused on “midlife
venture capital”—helping mature tech companies create new products that
would transform their businesses. Our approach was based on two
insights: Mature tech companies had low valuations, and investors
overestimated the cost and complexity of product transformations. At any
other time, Silver Lake’s radical idea might have scared investors, but
in the spring of 1999, institutional investors—state pension plans, in
particular—were desperate to put money into the tech sector. It’s hard
to imagine better circumstances in which to test a new investment
strategy.
failure  private_equity  Silver_Lake  fallen_angels  midlife  turnarounds  vulture_investing  Roger_McNamee  insights  institutional_investors  valuations  technology  financial_engineering  transformational  overestimation  radical_ideas 
april 2011 by jerryking
Another kind of 'hot' market
July 19, 2004 | Canadian Business Online | By Tavia Grant .
Eric Bushell's firm, CI Funds, was among the few Canadian signatories
to the Carbon Disclosure Project. The project, signed last November by
95 institutional investors representing more than US$10 trillion in
assets, asked the world's largest companies to disclose information
about risks associated with climate change and associated legislation.
The thinking is that companies could face rising energy costs, lawsuits,
non-compliance issues, threats to reputation and higher taxes. Better
disclosure will help investors assess the risks.
climate_change  risks  carbon_credits  Tavia_Grant  disclosure  institutional_investors  reputational_risk  risk-assessment 
december 2010 by jerryking

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