ESG Newsletter

2020-09-01

All About Alpha: Economists in general, and scholars of finance in particular, have long been concerned with the “agency problem,” the conflict of interest inherent in any relationship where X is expected, and perhaps required by law or contract, to act in the best interest of Y. The problem exists because, for example, stockholders expect a corporate management to act on their behalf, and limited partners expect a fund management to act on theirs. But it ain’t necessarily so.

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