The purpose of this paper is to give a peer review of the presentation team’s performance. The topic covered by the team was the role of financial market efficiency in corporate finance and its relevance to fund manager Bill Miller, Value Trust, and potential investors. We will look at the following areas in assessing the performance of the presentation team: ■ The value of supplemental readings ■ Quality and content of the concept lecture ■ Quality of the case analysis ■ Strength of the case
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Background of the study: Mutual fund industry in India attaining maturity Even though the capital market attracts people there are several problems associated with it. While investing directly in to capital market one to be careful to judge the valuation of the stock and understand the complexities involved in the stock price fluctuations. So, a person with moderate knowledge of capital market generally prefers to invest in mutual funds. In recent times mutual fund industry in India is growing
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rejected proposal November 9th - Put up or shut up deadline Kraft Formal Offer November 9th - Formal offer on the initial same terms December 14th - Cadbury published defense document January 2nd - Press rumor: Ferrero, Hersey or Private Equity fund could bid Speculation that Nestlé could be a white knight Potential counter bidders: Hershey January 8th – Kraft sells Pizza Business to Nestle for 3.2bn USD Nestlé said they won’t bid for Cadbury Warren Buffet criticized excess use of Kraft’s shares
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as well as term to maturity of the principal. The debt holder stands as a creditor and in case of default, he has a prior claim on firm assets over the equity-holder. The equity holder has a residual claim to assets and income. He can receive funds only after other claimants are satisfied. Income is in terms of dividends, the amount and timing of which are not certain. 3) What is the basic principle in determining the price of a financial asset? The basic principle is that the price of
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Sona Patel Volkswagen of America Managing IT Priorities The new process at Volkswagen to select, manage, schedule and fund projects seems structured and effective. The Transformation: In the 1990s, Volkswagen had a very decentralized IT system. Initially they had outsourced all their IT work to Perot Systems and in doing so they drastically reduced the IT staff within the organization. When that didn’t work well, they created Volkswagen AG company gedasUSA Inc. which acted as the point of
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The Mutual Fund At a basic level, mutual funds are nothing more than a collection of stocks and bonds. A mutual fund primarily focuses on bringing groups of people together to invest their money into bonds, stocks, and other different securities. It’s important to know that each of these gathered investors owns shares that ultimately make up a portion of the holdings in the total fund. Once a person invests into these stocks, bonds, or securities through the mutual fund they can make money in
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allowed per semester. Before making the trades, you should research your companies and develop written rationales on why you selected the company/mutual fund for investment. The research should include investment objectives, economic/market/industry analysis, analysts’ opinions/evaluations, and rationale for buying or selling equities or mutual funds. All of the research tools are available from the home page (see below). There is a menu item (Research Tools) with its own drop-down menu for this purpose
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banks injected money into LTCM, Bear ended LTCM’s last hope by calling a $500 billion short-term debt to decrease its own risk. While trying to maintain order, Fed worried that if it set the precedent of a government bailout of a private fund, then other funds would have
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case: Billy Miller, who manages the Value Trust Fund, consistently leads his company to beat the mutual fund market for 14 years. This remarkable outcome is viewed as impossible mission by those economists and financial analysts. Is this a pure luck or Bill Miller has some unique strategies to run the company? Miller said: “Maybe it’s not 100% luck. Maybe 95% luck.” If it is just lucky to achieve the result in today, should we invest our money into this fund? Or we should do a detailed analysis before
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Investment Management Long Term Capital Management HBS Case Questions 1. Analyze different trading strategies of LTCM Answer: LTCM engaged in primarily in convergence and relative value strategies. Relative value strategy : It is a spread trade and it involves two assets whose prices or yields tend to converge with time . it involves long and short positions of similar instruments. This often happens when a company
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