The Children's Investment Fund, 2005

Authors: Cohen, Randolph B.; Sandbulte, Joshua B.
Source: Harvard Business School Publishing
Year: 2006
Company Name: The Children's Investment Fund
Number of pages: 24

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Abstract:

TCI, The Children's Investment Fund, is a London-based hedge fund. The firm donates a significant fraction of the fees it earns to a charitable foundation. In 2005, TCI took a large stake in Deutsche Borse, the stock exchange in Frankfurt. Its battle with management disrupted a proposed merger and caused the CEO to exit. Addresses a variety of issues in the investments business, including: How do stock pickers create value? What are the benefits of long-term vs. short-term orientation, buying vs. selling short, and a generalist vs. a specialist approach? What is the role of shareholder activism in corporate governance? Do the investment business and charitable giving mix?