Category: Finance

Harvard’s money managers get a (very) public scolding.

(Ed: This couldn’t be said in private?) The Urgency of the Present Sub-par endowment returns are one of the greatest threats to Harvard today By THE CRIMSON EDITORIAL BOARD September 28, 2016 Harvard faces numerous pressing issues: a suboptimal social scene, growing competition from other universities for talent, and critical challenges to diversity and inclusion.

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Innovation In Action Series #4: The Innovation Value Model

In past posts in this series I addressed briefly some of the most critical issues corporates should think about when starting an external innovation effort that will focus on startups. In this last post, I address the issue of value creation, which is perhaps the least understood and least defined aspect of most corporate venturing projects at their outset.

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A Quantitative Approach for Valuing and Managing Procurement Cost of Risk

One of the most debated topics today in procurement is the issue of risk. The majority of the articles and guidance given to Chief Procurement Officers (CPOs) on this topic focus on trying to avoid future risk costs that would be generated by, say, shutting down production because a critical supplier went out of business

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Dollars, Euros, or “Googles?” Are Corporate Currencies the Next Big Thing?

The title of this post may seem far-fetched to anyone who has not been keeping with the latest developments in digital currencies, but the idea of a company issuing its own currency is a serious topic of discussion in international financial technology circles. The case for such an invention is quite strong, e.g.: Corporate currencies could be

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Why Insider Trading Should be Legal

I came across an interesting article on NYT’s DealBook section the other day that documented the on-going appeal against insider trading convictions on behalf of two former hedge fund traders, Todd Newman and Anthony Chiasson. The two men were prosecuted by the office of Preet Bharara’s, who has a perfect conviction record (80 for 80) in insider trading cases. DealBook notes

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Mohamed El-Erian: “The Democratic Disruption of Finance”

Mohamed El-Erian has an insightful column on Project Syndicate in which he suggests that the technology-driven revolutions that have affected so many sectors are finally coming to finance as well. After commenting on the most obvious example, Bitcoin, El-Erian notes the following: More promising examples, albeit less well-known, may be found in Internet-driven lending and borrowing clubs

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In Defense of HFT: “They’re good for price discovery.”

After all the negative press on HFT lately, at least one group of researchers, at the European Central Bank, has come out with a contrarian viewpoint. Their views were published in a working paper entitled “High Frequecy Trading and Price Discovery,” and here is their paper’s abstract: We examine empirically the role of high-frequency traders

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Recent Read: “Flash Boys” by Michael Lewis

Michael Lewis’ Flash Boys is a short (I read it on a Seattle-DC flight), well-written, exasperating and flawed look into the world of High Frequency Trading (HFT). HFT, for those not familiar with the acronym, is the term used to describe trading that has two principal features. First of all, HFT is executed primarily by computer algorithms

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FT: The Euro Crisis Is Still There

Gideon Rachman is sounding the warning bell on FT over the fragility of the Euro recovery plan. Recalling the European Central Bank President’s now-famous statement of support, Rachman warns that the crisis is still there, just buried beneath a surface of nice words and hopeful thoughts. Notes Rachman: “Whatever it takes.” Mario Draghi’s declaration that he would

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