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Video: Howard Marks on the different approaches to the business of investing
Hedge Funds
<p>Howard Marks on the different approaches to the business of investing</p> <p>This story originally appeared in ValueWalk.<br /> Photo: kellywritershouse</p>
Julius Baer’s fledging collection of Swiss contemporary art
<p>With over 5,000 pieces of art in its collection, the Julius Baer Art Collection has become a desirable destination for emerging Swiss artists. Fostering young talent is a mission the bank proudly accomplishes. Its objective, then and now, is to buy and display contemporary Swiss art with the purpose of supporting artists who, at the time of a first purchase, are not yet firmly established, but clearly have a great deal of potential, writes FinBuzz.</p> <p>For Hans J. Baer (1927-2011) art was not something to be shut away but something to be appreciated daily, allowing it to become integral to the culture and environment of the company. Much of the bank’s artwork is off-limits to the public, but can be seen on the walls of the Zurich, Switzerland headquarters or in one of the other offices spread across five continents and in over 25 countries and more than 50 locations. Sometimes the Julius Baer art team runs special tours, exhibitions and events, and lends its pieces to museums.</p> <p>As one would expect, the artworks are excellent conversation starters when clients come in, adding some flavor of Swiss heritage to everything the bank does.</p> <p>“Our clients are very interested in art. I believe that after guiding a client through the collection that they will connect very differently with the company thereafter,” said Barbara Staubli, Julius Baer’s art collection curator. Staubli joined Julius Baer in 2011, after working at the world-renowned Hauser &amp; Wirth gallery. Before that she studied art history at the University of Zurich.</p> <p>In order to be put on the watch list by the Julius Baer Art Committee, an artist must either have been born in Switzerland or live in the country. The bank is on the lookout for art at public exhibitions in art galleries and museums, and the young talent is purchased by the bank.</p> <p>The Julius Baer Art Committee believes that this kind of support is what an emerging artist needs the most as he or she creates confidence to move forward, and of course, it helps with the cash-flow too. The bank then follows the artist through their career and forges closer ties with them. Today, the bank boasts the works of Roman Signer, Pipilotti Rist, Ugo Rondinone, Dieter Roth, John M. Armleder, and Lutz &amp; Guggisberg.</p> <p>If the bank is strict about an artist having close connections with Switzerland, it is much more open about the form of art itself. The collection contains paintings, drawings, photography, installations, video art, and objects created with new technology. In 1995, the committee purchased its first audio and video installation ‘Edna’ by Pipilotti Rist, which is part of a series of videos titled ‘Yoghurt on Skin-Velvet on TV’, today considered one of the collection’s gems.</p> <p>Collecting art has a very long tradition at Julius Baer and dates back to the 1930s. In 1981 Hans J. Baer decided that the collection strategy should be precise and reflect the values of the bank itself. This is when the underlying theme – quintessentially Swiss art through the eyes of contemporary artists – was established. It was also when the Art Committee was formed. Unlike other banks, this particular Art Committee includes actual employees who get to see the artworks on an everyday basis. The committee also includes relationship managers, a head of strategy research, and, interestingly, no one from senior management. “It’s very important,” said Ms. Staubli, “as it reflects that art is something for all employees and a vital part of our corporate culture.”</p> <p>El Frauenfelder, Zurich Airport, 1979</p> <p>Studer &amp; van den Berg, Schlitten no.8, 1960/1962</p> <p>Beat Zoderer, Reels.Pipes.Spools-object, 1955<br /> This story first appeared in FinBuzz</p> <p>Photo: FinBuzz</p>
Daily Scan: Stocks plummet into the red; Shootings shake Paris
Capital Markets
<p>Updated throughout the day</p> <p>November 13</p> <p>Stocks fell hard Friday, ending the week in the red. The Dow was down 1.16%, the S&amp;P 500 fell 1.12%, and the Nasdaq lost 1.54%. Retail merchants collapsed in the U.S. on a combination of weak earnings and an unexpectedly weak October report from the Commerce Department that showed sales rose only 0.1% in October, short of the expected 0.3% increase. Some of the nation's biggest retailers hit 52-week lows, including Macy's, down 4.2% (after falling more than 14% earlier in the week); Nordstrom's, off 15%; JCPenney, down 15.4%; and Fossil, which immolated, falling 36.5%. Car makers also fell if more modestly on the retail sales news. Oil fell 3%, closing near $40/barrel.</p> <p>Saturday night you can catch the Democratic debate on CBS.</p> <p>Here’s what else you need to know:</p> <p>Several killed in Paris shootings. Several people were killed and at least seven injured in a shooting outside a restaurant in central Paris Friday evening. There were also a series of explosions at the Stade de France. BBC, CNN</p> <p>Cargill to cut jobs. The commodities trader is restructuring, closing two offices and laying off employees. Reuters </p> <p>Will Hamlet on the Potomac continue? To raise rates or not to raise rates, that we thought was a settled question. But not only did retail sales disappoint Friday, so did U.S. producer prices dropping for the second straight month by 0.4% in October. Economists had predicted a 0.2% rise.  Earlier in the day, Cleveland Fed President Loretta Mester said the economy looked good-to-go for a federal funds hike -- if the news continued to be good. If.</p> <p>J.C. Penney's stock falls after earnings. The retail store reported better than expected quarterly net sales, but the company's stocks fell, reflecting the low October retail sales. The company reported a net loss of $137 million, or 45 cents a share. Analysts estimated a loss of 55 cents a share. Net sales were up 4.8% to $2.9 billion, slightly better than the expected $2.88 billion. Penney's shares fell 15.4% Friday. Reuters</p> <p>DraftKings sues New York over shutdown. New York Attorney General Eric Schneiderman closed the DraftKings and FanDuel websites Tuesday from accepting bets in New York, call the businesses illegal gambling. DraftKings filed a lawsuit to overturn the order. Reuters</p> <p>Syngenta said to reject $42 billion takeover bid from China. The offer is the biggest ever by a state-owned enterprise for a European company. Earlier this year, Monsanto had offered to buy Syngenta, the world's biggest agrichemicals company, for $47 billion. Reuters</p> <p>U.S. has “Jihadi John” in its cross-hairs. American forces have carried out an air strike targeting the British Islamic State militant known as “Jihadi John,” the Pentagon has said. The extremist was seen in videos of the beheadings of Western hostages. BBC</p> <p>At least 41 dead in pair of suicide bombings in Beirut. ISIS took responsibility for the terrorist attack in a busy shopping area of a Shia neighborhood, also known to be a Hezbollah stronghold. More than 200 people were wounded. BBC</p> <p>Suu Kyi's NLD wins Mayanmar election by landslide.  Myanmar's opposition National League for Democracy has won a landslide election victory, officials say, with more than 80% of contested seats now declared. BBC</p> <p>&nbsp;</p> <p>You won't believe this…</p> <p>Ugh. Airbnb is full of love. The most common three-word phrase for hosts? "Love to travel."  The most common three words to describe a rental?  It's in "the heart of." We'd add "Adore making extra $$$$." Vox<br /> Photo: Steve Jurvetson</p>
Reuters names top 100 global innovators
<p>Thomson Reuters has announced its top 100 global innovators for 2015. The fifth annual award is given to companies that have at least 100 unique inventions patented over the most recent five-year period, have a global presence, and be rated for success and influence by Reuters' metrics.</p> <p>Of the winners, 75% come from the U.S. and Japan. The other fourth come from Belgium, Canada, France, Germany, the Netherlands, South Korea, Sweden, Taiwan. Nearly a third of the U.S. winners come from Silicon Valley.</p> <p>New additions to the 2015 list include:</p> <p> Air Products<br /> Alstom<br /> Amazon<br /> Analog Devices<br /> Bayer<br /> Becton Dickinson<br /> Boehringer Ingelheim<br /> Bridgestone<br /> Bristol-Myers Squibb<br /> Chevron<br /> Exxon Mobil<br /> Idemitsu Kosan<br /> InterDigital<br /> Japan Science &amp; Technology Agency<br /> Johnson Controls<br /> JTEKT<br /> Kawasaki Heavy Industries<br /> Makita Corporation<br /> Mitsui Chemicals<br /> Showa Denko<br /> Solvay<br /> Thales<br /> Toray<br /> Valeo<br /> Yamaha Motor<br /> Yaskawa Electric<br /> Yazaki</p> <p>Photo: Pascal </p>
People Moves: Standard Life loses chairman to Barclays; Deutsche shuffles investment bank
Capital Markets
<p>Standard Life chairman to join Barclays board. Standard Life chairman Gerry Grimstone will replace Michael Rake on the Barclays' board of directors at the end of the year. Rake is leaving to become chairman of Worldpay. New York Times</p> <p>Deutsche shuffles investment bank. Goldman Sachs veteran Alasdair Warren will join Deutsche as head of corporate and investment banking fro Europe, Middle East, and Africa, effective in spring 2016. John Eydenberg and Marc Pandraud were appointed to the newly created roles of vice chairmen of CIB for the Americas and EMEA, respectively. Mark Hantho was named head of equity, and Mark Fedorcik as head of debt capital markets. Wall Street Journal <br /> Photo: ©<br /> &nbsp;</p>
People Moves: Wellington managing directors to retire; New River names new portfolio manager
Asset Management
<p>Wellington managing directors to retire. Lucius Hill and Karl Bandtel, both senior managing directors and fund managers, will retire from Wellington Management in June 2016. Hill currently co-manages the $14.2 billion Vanguard Long-Term Investment Grade Fund. Bandtel was managed the $9.2 billion Vanguard Energy Fund since 1992. Pensions &amp; Investments</p> <p>New River Investments hires new portfolio manager. David Schawel will be the portfolio manager of the New River Opportunistic Income fund based in North Carolina. Schawel previously worked as a portfolio manager at Square 1 Financial for eight years. Reuters</p> <p>BNY Mellon Wealth Management names Washington director. Rob Klingensmith will serve as wealth director, reporting to regional president Susan Traver. Klingensmith comes to the firm from Pilatus Bank, where he worked as chief executive of banking operations and oversaw the ultra-high net worth client engagement. Reuters<br /> Photo: ©<br /> &nbsp;</p>
Apple CEO Tim Cook to students: ‘The world has a stake in how you do business’
<p>On Tuesday, November 10, Apple CEO Tim Cook delivered his keynote speech at Bocconi University, Milan — the first time he has addressed a European university, Finbuzz reports.<br /> Among the highlights of his speech, Cook told the assembled students and graduates:</p> <p> I’ve been fortunate to join a company that shares my values, and my great hope for you is that you do the same.<br /> You have before you an incredible opportunity — I would actually call it an obligation — you owe it to yourself and to the rest of the world to be a part of something that serves a noble purpose, however you define it, and you can do that through your work.<br /> Because now more than ever, businesses are in a position to help societies solve their greatest problems. The responsibility should not rest on governments alone. Whether we are talking about climate change or equal rights, the challenges we face are simply too great for businesses to stand on the sidelines, especially today when companies have more capacity to do more good in more ways for more people than at any point in human history.<br /> I hope the students in the audience today hold on to your idealism. Not just as students, but also as graduates, as CEOs and even as presidents.<br /> You really can live with your values and your passion to change the world.<br /> The environment must also be on the business agenda. As business leaders, we have a responsibility to address this, and urgently. We have obligations to our companies and our shareholders because climate change impacts supply chains, energy crises and overall economic stability.<br /> So, what will your success look like? As you consider that question, understand that the whole world has a stake in your answer. The world has a stake in how you do business.<br /> You are citizens of the world. You have a voice to be heard across continents. Use it! Speak up! You are better connected to the rest of the globe that any generation has ever be</p>
A big emerging market ETF will look different very soon
Asset Management
<p>The iShares MSCI Emerging Markets ETF (NYSE: EEM), the second-largest emerging market exchange traded fund by assets, is expected to look different next month as index provider MSCI Inc. (NYSE: MSCI) proceeds with the inclusion of companies with primary exchange listings in countries away from home domiciles in the firm's international benchmarks.</p> <p>Companies traded outside of the country of classification (i.e., "foreign listed companies"), terminology used by MSCI, include well-known Chinese Internet and technology firms such as Alibaba Group Holding Ltd. (NYSE: BABA) and Baidu Inc. (NASDAQ: BIDU). Those companies and others will be added to the MSCI Emerging Markets Index on December 1, which could lure added investments to funds tracking that benchmark of $70 billion or more.</p> <p>KraneShares CSI China Internet Fund (NASDAQ: KWEB). Home to a ...</p> <p>Full story available on<br /> Photo: Jim Winstead<br /> &nbsp;</p>
Did Bridgewater cause the ETF crash?
Hedge Funds
<p>Ever wondered what caused the August ETF flash crash? Well, Zero Hedge may have your answer.</p> <p>Bridgewater Associates – without a doubt the world’s largest hedge fund house – has recently filed its 13-F and according to the ever-indignant news portal, Ray Dalio and his motley crew of honesty junkies may have been the root of that whole, sordid mess:<br /> “Bridgewater sold 41% of its holdings in the world's two largest EM ETFs in the third quarter amid a rout in developing-nation assets.  Specifically, it cut its investments in Vanguard Group Inc. and BlackRock Inc.’s ETFs to a combined 104 million shares, from 175 million in the previous three-month period.</p> <p>The value of the ETF holdings dropped more than 50 percent to $3.4 billion as a result of share price declines and the divestments.</p> <p>In other words, if anyone is looking for the culprits behind the aggressive ETFlash Crash of August 24, Bridgewater may indeed be a good starting point.”<br /> Whether or not this is true is totally up to speculation, though it is worth noting that Bridgewater’s All Weather Fund was among the first things analysts and fund managers blamed for late August’s startling volatility, and given the fund’s parameters – not to mention size – it doesn’t seem implausible for it to have moved the markets even just the tiniest bit.<br /> Photo: ☰☵ Michele M. F.</p>
Food safety issues cast a shadow over China’s O2O sector
Venture Capital
In China, where public confidence has been shaken by a series of food safety-related scandals, the growth of venture-backed startups developing tech solutions for the country’s fractured supply chains should be welcome. But it’s not that simple. Tech In Asia reports that China’s booming online-to-offline (O2O) sector has been getting some n   egative attention from the jittery Shanghai State Food and&hellip;