Social and Sustainable Investing Gets a Boost From an Unlikely Source: Wall Street Activists (CNBC)
Wall Street’s activist investors, once known for pushing for extreme cost-cutting or just about anything that would boost the bottom line, are starting to use their money to promote a different kind of corporate action: social and environmental change. They are doing this, they say, not only as a matter of moral responsibility, but for their original mission of generating better returns for their clients Socially responsible investing, long the bastion of faith-based activists and civic do-gooders, can now count several high-profile activists – including Clifton Robbins of Blue Harbour Group and Barry Rosenstein of Jana Partners – among its acolytes. This kind of investing is known as “ESG” for environmental, social and governance factors.
D.E. Shaw, Two Sigma Billionaires Code While Janet Yellen Reads (Bloomberg)
The founders of D.E. Shaw and Two Sigma Investments coded over cocktails, definitely off-duty from algorithmic money-making. David Shaw and David Siegel took turns animating a cat and making a variation of a Bach Cello Suite in Scratch, the visual programming language their kids have mastered. They were at a benefit for the Scratch Foundation Wednesday in Tribeca, with Siegel’s Two Sigma co-founder John Overdeck and Blackstone Group’s Tom Hill.
David Einhorn Finds Victories More Elusive Since Winning Lehman Bet (The Wall Street Journal)
A decade after the financial crisis, The Wall Street Journal has checked in on dozens of the bankers, government officials, chief executives, hedge-fund managers and others who left a mark on that period to find out what they are doing now. Today, we spotlight hedge-fund managers David Einhorn and John Paulson. Hedge-fund manager David Einhorn struck it big with his wager against Lehman Brothers Holdings Inc. before the bank’s 2008 collapse, but his fund’s performance has been much spottier since then.
In Victory for Elliott, Hyundai Motor to Cancel $890 Million in Shares (Reuters)
SEOUL (Reuters) – Hyundai Motor (005380.KS) said on Friday it will cancel $890 million worth of treasury shares, its first stock cancellation in 14 years – a plan that comes amid shareholder pressure to improve returns, restructure and bounce back from dismal earnings. The cancellation is an initial win for U.S. hedge fund Elliott Management, the most prominent among the few activist shareholders to seek reforms at South Korea’s powerful chaebol or family-run conglomerates. But whether Hyundai will cede to its other demands is less clear. Hyundai’s move shows the chaebol have become more responsive to calls for reform. They also face government pressure to improve governance as well as public anger over the perception that their growth has not sufficiently benefited smaller firms and ordinary people.