SUPER HEDGE FUNDS: NEW HORIZONS FOR GLOBAL MARKETS

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Activist hedge funds revolutionized corporate America, generating both excitement and criticism alike, and is about to become a global phenomenon. In this lecture Professor Sharon Hannes will suggest that an innovative market mechanism, a "super hedge fund," would maintain the benefits of hedge fund activism, while curbing its downsides. The super hedge fund would not really be a fund but, rather, a contractual arrangement among a broad group of institutional investors and a task force of financial experts. The task force would pool together the potency of the institutional shareholders in a sophisticated manner and then unleash its sting on target corporations. Unlike current hedge fund activism, the super hedge fund would not necessitate substantial financing or market transactions and, therefore, would be extremely efficient and very accessible. Importantly, the mechanisms of the super hedge fund would operate so as to ensure that the fund's incentives are closely aligned with the interests of the long-term shareholders of the targeted corporations. Hence, the new mechanism should respond to the claims of short-termism lodged at current hedge fund activism.


sharon hanes resizedProfessor Sharon Hannes is a Professor of Law at Tel Aviv University Faculty of Law and the Academic Director of the Cegla Center for Interdisciplinary Research of the Law, the largest legal research center in Israel. He is also the editor in chief of the journal Theoretical Inquiries in Law, and previously served as the Vice-Dean of the Faculty of Law (2009-2011) and the Academic Director of the Tel Aviv - Berkeley Executive LL.M. Program in Commercial Law, a joint program of Tel Aviv University and U.C. Berkeley.

Professor Hannes received his S.J.D. in Corporate and Financial Law from Harvard Law School, where he was the recipient of the Byse Fellowship (2001). He completed his LL.M. in Corporate Law at NYU School of Law, where he was a Hauser Global Scholar. He received his LL.B. degree in Law and a B.A. in Accounting from Tel Aviv University. Professor Hannes was a Visiting Professor at Northwestern University School of Law, Columbia Law School, and Georgetown Law Center.

Professor Hannes teaching and research interests include Corporate Law Policy & Corporate Finance, Managers Remuneration and Incentive Pay, Corporate Control Contests, Securities Regulation, and Law & Economics.