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> Is this just an investor looking out for his fund or doing his duty pressuring companies to get their act together? Well as a fund manager his #1 concern is
by ithinkinstereo 9y ago
> Is this just an investor looking out for his fund or doing his duty pressuring companies to get their act together?
Well as a fund manager his #1 concern is maximizing his fund's investment returns.
He couldn't care less if GM/Tesla gets their "act together".
TSLA definitely seems over-valued, but the market is betting on the possibility of Tesla massively disrupting combustion cars, which explains why TSLA stock is soaring while GM stock is stagnating/flat.
- WorldMaker 9y agoIt seems remarkably similar to a new round of the historic Dodge v Ford [1], with an extra amount of weirdness by using corporate structures against themselves and the "fiduciary duty" that Dodge v Ford helped establish. This fund doesn't seem to care at all how well the company does, just the size of the dividend check every quarter. It seems woefully short sighted and aggressively parasitic. [1] https://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Company https://en.wikipedia.org/wiki/Dodge_v._Ford_Motor_Company