Professor Alex Edmans

In praise of hedge funds

‘... short holding periods don’t imply short horizons. Even in 20 months (far from a flash of time), hedge funds can make improvements with long-lasting impact, similar to a consultant or turnaround specialist hired for a few months. Their short holding periods give them a sense of urgency, and the option to exit gives them teeth that can overcome managerial entrenchment.’

Carl Sjostrom and Hans-Kristian Bryn

Symbiotic board committees

‘Board committees are all too often working in silos and thus providing only limited support to corporate boards in plenary. The remedy does not need to be very complicated. In essence we are talking about opening up the lines of communication and recognising that expert input is important but it is even more important that expert questions are considered in a broad business context.’