...What is unappealing in HFs: a) Illiquidity: redemptions only allowed at the end of the year + initial lockup b) Minimum investments requirements: $1million minimum c) High fees: 2% of asset managed (possibly + full cost of operations), + 20% of profits. d) Selecting the right HF manager: Lack of benchmark for hedge funds, difficult to assess skill vs. luck, idiosyncratic vs. systematic returns. e) Inability to gain access to high quality funds: some investors found the idea of selecting a portfolio from many thousands an intimidating task, because of lack of transparency f) Lack of benchmark indices: HF Indices were just peer groups, not true benchmarks, and were biased (i.e. style drift, survivorship bias). Alternative Products of HFs: 1. Funds of Hedge Funds (FOFs): * Alternative to investing directly in HFs. * FOFs aimed to collect investors money and allocate it among a select group of HFs * Advantages: Solves a number of issues: modest capital can be used, less difficult liquidity rules and less likely to encounter liquidity problems since you have a number of funds rather than 1, access to hard to enter funds * Half of the money of HFs came through FOFs * Disadvantages: High FOF fees (1.5 higher than direct investing) 2. Multi-Strategy Funds: * Avoids problems of HFs employing one strategy at time. * Advantages: (over FOFs) did not charge an additional fee lay over and above HF fees...
Words: 1830 - Pages: 8
...Database Design and Data Modeling: Assignment 2 Mohammed Azrak Kaplan University Database Design and Data Modeling: Assignment 2 Question #1 Definitions: Define each of the following terms (1 pt. each). In addition, provide an example of each term (2 pts. each). a. Business Rule b. Entity c. Entity Set (Entity Type) d. Entity Instance e. Attribute f. Relationship g. Connectivity h. Cardinality Constraint i. Participation Constraint. j. Associative Entity Answer #1: a. Business Rule – a description of a policy, procedure or principle within an organization. For example, truck drivers can only drive for 60 or 70 hours in the last seven or eight days. b. Entity – A person, place or thing for which data can be stored. For example, an airport is an entity that has many airlines within it. c. Entity Set (Entity Type) – A grouping of related entities in a relational model. For example, all airlines having a gate at an airport. d. Entity Instance – is an individual occurrence of an entity type. For example, if a family had three children, Peter, Michael, and Sophie, each child (Peter, Michael, and Sophie) would be an instance of the ‘child’ entity. e. Attribute – is a characteristic of an entity or an object. For example, Southwest Airlines is an attribute of entity ‘Airline’. f. Relationship – An association...
Words: 1164 - Pages: 5
...[Type the company name] | FNCE644 Equity Project | Australian Fund Managers | | | | Our group has chosen Perpetual Investor Choice Fund for the long term investment. There are a variety of reasons as to why we chose Perpetual fund over the rest and they will be explained below. The first and foremost are the excess returns after entry fees and management fees. Fund | UBS | Perpetual | HSBC | Merrill | 5 year return | 11.90% | 13.81% | 7.83% | 8.24% | Benchmark Return | 9.24% | 9.24% | 9.24% | 9.22% | Excess return | 2.66% | 4.57% | -1.41% | -0.98% | Figure 1: Table of Excess returns before computation of entry and management fees Figure 1 shows the excess returns that the respective fund managers achieved for the period of year 2000-2004. All returns have been annualized for comparison. It is shown that Perpetual fund managers outperform their benchmark by 4.57%, which is almost 50% higher than the nearest competitor, UBS funds. A mutual fund traditionally has management and entry fees, which affect the actual net return an investor receives. It should be noted that the Perpetual Fund has one of the highest entry and management fees which are 4% and 1.95% respectively. Nevertheless, it still manages to outperform the benchmark and its competitors. At this juncture, it should be noted that HSBC Imputation Fund and Merrill Lynch Australian Shares Fund have been ruled out in our selection, as they are not able to match the benchmark. Taking a closer...
Words: 2742 - Pages: 11
...Management & Control Overview FINAL EXAM © IES Business Consultants 2 1 11/23/2013 Creativity versus Innovation . . . Creativity: to create a novel idea or unique approach to solve problems or to craft opportunities. Innovation is the process of creating new ideas and putting them into practice. © IES Business Consultants 3 4 Steps for the Innovation Process Idea creation. Initial experimentation. Feasibility determination. Final application. © IES Business Consultants 5 2 11/23/2013 4 Steps for the Innovation Process © IES Business Consultants 6 What is Organizational Change ? Change leader. – A change agent who takes leadership responsibility for changing the existing pattern of behavior of another person or social system. © IES Business Consultants 7 3 11/23/2013 Change Leaders vs Status quo Managers !!??!! Frankly . . . What are You ? © IES Business Consultants 8 Top-Down Change . . . Strategic change that is initiated with the goals of the organization. Driven by the organization’s top leadership. Success depends on support of middle-level and lowerlevel workers. © IES Business Consultants 9 4 11/23/2013 Bottom-Up Change – The initiatives for change come from any and all parts of the organization, not just top management. – Crucial for organizational innovation. – Made...
Words: 699 - Pages: 3
...Task 8 3.1 Explain the purpose and nature of the budgeting process. Task 8 IN business,budget can be defined as a plan for an organization is outgoing expenses and incoming revenues for a specific time period. Budgets are used in many organizations to Track and control spending The purpose is to ensure that available funds are used according to plan,within preset limits and not exceeding available funds. Support funding requests The purpose is to justify the use of funds and to help plan future spending accurately by describing how funds will be used. The budgeting process: Companies and organizations typically develop and implement budgets on a periodic basis at fixed intervals. The norm in private industry is to produce a plan for each fiscal year. Some government organizations also prepare annual plans, but two-year (biennial) budgets are also common in government. Although plans are sometimes adjusted in "real time" (that is, they are treated as flexible budgets after start of the planning period they cover), such changes are exceptions to the normal rule, which is to keep the forecast intact (static) once implemented. In the period of time between issuance of one budget and the next, planning-related decisions and plans are referred to as the budget cycle or process. In large companies, large educational institutions and non profit organizations, and in government organizations, the process normally extends across months, if not the entire period...
Words: 4703 - Pages: 19
...3.1.4 ORGANISATIONAL ARRANGEMENT From Mintzberg (1983, p.152) analysis, organizations are composed of five configurations and each configuration has six components. Operating Core: These are employees who execute the work related to the organization products and services. Strategic Apex: Top-Management workers (Coordinating Directors) responsible for the management of the organization. Middle Line: Directors who link the strategic apex with the operating core. Techno structure: Analyst who design, plan, change or train the operating core. Support Staff: Experts who provide support to the organization outsides of the operating core’s activities. Ideology: The practices and beliefs that make the organization unique. There...
Words: 1982 - Pages: 8
...workload from transaction workload and enables an organization to consolidate data from several sources. Additionally important, data warehouse will include a way of extracting, transporting, transformation and techniques of providing solutions. It also provides client analysis tools, anaylysis engines (OLAP), plus a series of other applications that manage the process of capturing data as it occurs. Facts about a DW * Less frequent updating done * Kept separate from the organization's operational database * Is made up of consolidated historical data which help the organizations’ business analysts to analyze the organizational business * It helps the executives to organize to take strategic decision by understanding and using the available data and integration of diversity of application systems that allow analysis of consolidated historical data. Designs DW follows two most popular approaches in designing – the Bottom-Up or a Top-down designs. In a...
Words: 751 - Pages: 4
...employs. Hershey has redesigned its performance management system to appeal to their diverse group of employees, specifically the “millennials”, by implementing a “bottom up” style of performance management. Millennial generation employees are defined by their birthdate. A millennial refers to someone who was born after 1980. Currently, this group comprises one-third of the American workforce and will soon become the majority as they come of age. Millennials have expressed a desire to pursue work that is personally meaningful; they resist corporate hierarchy, are eager for challenge, desire autonomy, and are accustomed to getting work done in a variety of environments. When corporations like Hershey understand what motivates employees, like the millennials, they are better able to set mutual expectations for success. This is what Hershey has embraced with the bottom up performance management system. This bottom up approach allows employees to set their own goals and track progress on projects throughout the year. (Noe 2011, pg. 56) In order for the bottom up system to be effective the employee must understand the company’s goals and the strategy for achieving those goals. Employees must also understand what role they play within the company in order to be successful in setting their personal objectives. The bottom up performance management system appeals to the millennials in that they are engaged in their own development, they have an opportunity to set goals for themselves...
Words: 590 - Pages: 3
...processes of change rather than the changes of process. Top-Down vs. Bottom-Up The detailed changes would determine how staff was to be selected, developed, trained, remunerated, managed, promoted, removed. This would require there to be a set of Top-Down direction and targets, but also for other detailed aspects would a Bottom-Up development would be necessary. The first change was to include the National Sales Manager in development of the Annual Operating Plan (AOP) and the parallel Change Management Programme. This included presenting the AOP with outline Change Programme to the Full Plc Board. In his 10 years the NSM had seen every nuance of selling the product and managing the teams, but never had a strategic role. The strength of this combined 3 person Change Team, allowed there to be a Transformative Approach to change, driven from the Top- Down approach, but facilitated the necessary adaptive changes to the precise interactions that the sales people interfacing with the market would develop. Adaptation of the Plan When the 4 Tiered Structure was presented to the 6 Sales Managers it became clear that Succession Planning was undeveloped. This led to a segmentation of the Key Account Managers to allow each to spend time working as a Team Leader, a second in command of a Sales Team. This was a detailed bottom change development that was entirely in line with the communicated...
Words: 1750 - Pages: 7
...Enforcing mandatory school attendance bridging family assistance and income support payments with school attendance for persons living on the allocated lands and by providing meals for children while at school; * Introducing mandatory health checks for all indigenous children to identify abuse and treat health problems; * Acquiring townships allocated by the Australian Government through a scheme involving five year leases including payment of just terms compensation; * As part of the immediate emergency response, increasing policing levels in prescribed communities, including requesting secondments from other jurisdictions to supplement NT resources, funded by the Australian Government; * Requiring intensified on ground clean up and repair of communities to make them safer and healthier by marshalling local workforces through work-for-the-dole; * Improving housing and reforming community living arrangements in prescribed communities including the introduction of market based rents and normal tenancy arrangements; * Banning the possession of...
Words: 2305 - Pages: 10
...MGT 400 Exam 1 Study Guide Chapter 1: What is Strategy and why is it important? What is Competitive Advantage? Competitive advantage. It is a superior performance relative to other competitors in the same industry or the industry average. Sustainable - competitive advantage. When a company is able to outperform its competitors or the industry average over a prolonged period of time. Competitive disadvantage Underperformance relative to other competitors in the same industry or the industry average. Competitive Parity Performance of two or more firms at the same level. The firm that possesses competitive advantage provides superior value to customers at a competitive price or acceptable value at a lower price. What is strategy? Strategy describes the goal – directed actions a firm intends to take in its quest to gain and sustain competitive advantage. Strategy is about creating superior value, while containing the cost to create it. Strategy is not a zero-sum game. It is not always the case that one party wins while all others lose. Win- win scenarios: when competitors cooperate, occasionally, with one another to achieve strategic objectives, we call this co-opetition. Strategic positioning is staking out a unique position in an industry that allows the firm to provide value to customers, while controlling costs. Strategy as a Theory of How to Compete. It provides managers with a roadmap to navigate the competitive territory. A firm´s strategy can be seen as its...
Words: 3427 - Pages: 14
...Empower: Some Ideas and How to Apply Them Lambda International Consultants.LLC + York Career Development, Inc. Agenda 2 OUR CONCEPTUAL FRAMEWORK Lambda International Consultants.LLC + York Career Development, Inc. Introduction 3 YIN YANG AND TAOIST THOUGHT 4 Lambda International Consultants.LLC + York Career Development, Inc. • Taoist concept, two complementary forces that make up all aspects and phenomena of life • Yin is a symbol of earth, femaleness, darkness, passivity/reflection and absorption • Yang is conceived of as heaven, maleness, light, activity, and penetration • There are a series of five elements that form the cosmos according to Taoist philosophy Lambda International Consultants.LLC + York Career Development, Inc. Yin – Yang: the concept 5 http://www.britannica.com/EBchecked/topic/653297/yinyang • Business Cycle – Dynamic Situation – Innovation is key to survival and growth • Complementary properties are important in evaluating innovations • Competition – Checks and Balances; new products vs. old • Broad spectrum of competing alternatives when selecting candidates for Innovation • When to be guided by one concept, the other, or integrate both http://www.britannica.com/EBchecked/topic/653297/yinyang Lambda International Consultants.LLC + York Career Development, Inc. Yin – Yang: the concept … Applied to Business Innovation 6 Yin – Yang captures the concept of Cycle 6PM Sunset ...
Words: 5009 - Pages: 21
...Running Head: IMC 612 Qualitative vs. Quantitative Research 1 Comparing the Use of Qualitative and Quantitative Research in Marketing IMC 612 Qualitative vs. Quantitative Research 2 Qualitative vs. Quantitative Though qualitative and quantitative researches differ in their methodologies and philosophies, they both contribute to an overall research plan, and act to uncover the motives and feelings of the consumer. At their very essence the two types of research employ different reasoning and as such, each method has its own fair share of detractors and supporters. The truth of the matter is that despite their inherent differences, qualitative and quantitative research methods are complimentary in many ways and can be used in conjunction with each other (Colorado State University, n.d.). When combined, the two methods of research can give a more detailed picture of the consumer’s wants and needs. “Gathering vital evidence by conducting thorough and well-considered research can benefit businesses of all sizes” (Frost, 2012). Qualitative research by its very nature makes use of inductive reasoning (Colorado State University, n.d.). In inductive reasoning, the researcher begins with specific observations and measures, begins to detect patterns, formulates a tentative hypothesis based on those patterns...
Words: 1285 - Pages: 6
...summarizing the factors that affect the firm’s financial performance as measured by ROA. The model decomposes of two components: 1. Net Profit Margin – is simply how much profit (after tax) a firm makes divided by its net sales. It reflects the profits generated from each sales. 2. Asset Turnover – is the retailer’s net sales divided by its assets. This assesses the productivity of a firm’s investment in its asset and indicates how many sales are generated by each dollar of sales. This two components is determined by two set of activities, profit management and asset management, and that high ROA can be achieved by various combinations of net profit margin and asset turnover Retailing View Summary: Federal Department Stores vs. Costco Federated Department Stores operates two national department store chains, Macy’s and Bloomingdales’s. Like other department store chains, Federated offers a wide variety of fashionable apparel and home furnishings, a relatively high level of customer service provided by its sales associates and an attractive shopping environment. Costco’s warehouse stores, in contrast, offer limited assortment of food and general merchandise in a self-service, warehouse environment. Profit Margin Management Path Information used to examine the profit margin management path comes from the retailer’s income statement, which summarizes a firm’s financial performance over a period of time. Income Statement for Federated Department Stores...
Words: 1471 - Pages: 6
...Fall 2012 Sam (Sang-Jin) Han, Ph.D 13. Decision Support Systems Mongolian International University Project #2 T-test and Chi-Square Test TChi- Make an example of T Test and Chi-square test. Chi(Examples should be related to business/management) - Make a group of three people. Every body should present. - Prepare 5 minutes of presentation. Prepare Q & A. - You MUST submit the presentation file by December 3rd 8:30AM. (-10 point will be deducted and additional -1 point/hour will be deducted if your submission are getting late) T-test (Followings should be included): 1. Problem description. 2. Choose the right test (paired or independent). State if the two conditions for T Test are satisfied. 3. H0 and Ha (Specify one tailed or two tailed) 4. Sample size (N) and P-value should be included in the result. P5. Conclusion and references ChiChi-Test: 1. Problem description. 2. H0 and Ha 3. Degree of freedom and P-value should be included in the result P4. Your conclusion and References ChiChi-Square Test: degree of freedom DOF=number of categories -1 Decision Support Systems Decision Tree RuleRule-based System Business Information System, MIU, Sam Han DSS-ES connections These two can be completely different. The differences are technological as well as managerial. But they complement each other, creating powerful and integrated computer based systems that can improve managerial decision making capabilities . (Differences b/w DSS and ES) Objective Who makes...
Words: 1472 - Pages: 6
