Scan of Investors

Part
01
of four
Part
01

Scan of Investors: Part 1

Bezos Expeditions is the venture capital arm of Jeff Bezos and its CIO is Stephen Campbell. Investments include Workday, Twitter, and Uber. Blue Pool Capital is a family office and hedge fund whose CIO is Alexander West. They recently bought the Brooklyn Nets. These points and more can be found in the attached spreadsheet.

Summary

Research Strategy

In order to find the CIOs for each company, we first did a search of Linkedin. We verified that the respected CIOs were indeed still at the company through recent press reports and other business-oriented websites such as Bloomberg and Crunchbase. When we looked for fund sizes, we operated under the guideline that fund size could also mean assets under management. This made sense as both operate as hedge funds that manage the assets of a limited number of clients instead of raising money through investment rounds. The philosophies of both companies were not explicitly stated, hence we had to look through investment patterns and press releases to deduce their respective philosophies and strategies. This is how we determined that both take a mostly hands-off approach with their investments, except in one case, where Blue Pool Capital bought the Brooklyn Nets.
Part
02
of four
Part
02

Scan of Investors: Part 2

Pacific Century Group is a holding company that buys companies and revamps them. Recent high-profile purchases include AIG's asset management business and ING Groep N.V.'s businesses in Hong Kong, Macau, and Thailand. These points and more are discussed in the attached spreadsheet.

Summary

Research Strategy

The first thing we did in finding the person in charge of investments in each company was to look for their CIO. We looked for the CIO because they are usually the ones in charge of investing. We found this to be a challenge for both companies, but we found heads of investments for both companies even though they were not CIOs. When looking at the annual report for Investor AB, it made their corporate governance a bit clearer than their website. As there are three investment arms (Listed Core Investments, Patricia Industries, and EQT AB), the document names the heads of each of these investment arms: Petra Hedengran of EQT AB, Daniel Nodhäll of Listed Core Investments, and Christian Cederholm and Noah Walley of Patricia Industries. All except Petra Hedengran had work experiences as Investment Managers.

For Pacific Century Group, we realized that their main investment arm is PineBridge. When we looked at their staff, we realized that Richard Li is both Chairman and CEO of the group. In the past when major acquisitions were made, such as PCG's purchase of AIG's asset management business and their Asia life insurance assets, Mr. Li was named as the executor of those deals. Hence, we determined that he would be the one in charge of investments.

Finally, we determined fund sizes based on the definition that AUM can mean the same thing. For Investor AB, we added all the funds from each arm (271 SEK for Core Investments + 102 SEK for Patricia Industries + 21 SEK for EQT = 394 SEK), and used a currency calculator to determine what that amount is in dollars.
Part
03
of four
Part
03

Scan of Investors: Part 3

Harvard Endowment Fund is managed by Harvard Management Company. Its investments include Facebook, Palo Alto Networks, Booking Holdings, and Alphabet. These points and more are discussed in the attached spreadsheet.

Summary

Research Strategy

In order to find the CIO for each company, we searched through their official websites. We found that the CIO of HMC is Rick Slocum, but the CIOs of Alphabet investment companies were not so clear. In our research, we discovered that GV and CapitalG are the most significant Alphabet's investment companies, and the CEO of GV is David Krane, while CapitalG's founder and general partner is David Lawee.

When we looked for the fund sizes, we found that fund size could also mean assets under management. The philosophies of both companies were not explicitly stated, so we look through their investment patterns, press releases, and reports from Tech Crunch to get their philosophy and strategy. We got the information about their interactions with the management of invested companies by looking at their official websites. Both Harvard Endowment Funds and Alphabet stated that they take an active part in their investments. CapitalG even gives mentorship to their portfolio companies.
Part
04
of four
Part
04

Scan of Investors: Part 4

Microsoft invests in companies through its corporate account and investment arms such as M12 and ScaleUp. Apple has a more complex structure where it invests through its corporate account and its asset management firm, Braeburn Capital, which handles 70% of Apple's total cash. These points and more are discussed in greater detail in the attached spreadsheet.

Summary

Research Strategy

The first thing we did in finding the person in charge of investments in each company was to look for their CIO. We looked for the CIO because they are usually the ones in charge of investing. We found that the CIO of Microsoft is Beau Damon, but the investment chief for Apple was not so clear at first. In our research, we found that even though Apple does do investment from the company itself, most investments and money management are done through its subsidiary, Braeburn Capital. We found the current head of Braeburn Capital to be Jeffery Powell. We read several articles from business publications such as Business Insider, Forbes, and the Wall Street Journal that have all confirmed that Braeburn Capital deals with investments for Apple. More proof we found was that the previous CIO of Apple's Treasury Office called it Braeburn Capital.

We used the AUMs as the fund size for each company as each CIO spoke of the power of managing the whole Treasuries of their respective companies. Also, AUM and fund size are interchangeable terms in most instances. We were able to find the investment list for Microsoft on its website, and used news reports for more recent investments. We found an investment list for Apple on Crunchbase. It was very short, but through reports by WSJ and others we confirmed that Apple did not do many investments until recently.

Finally, we determined their strategy by using reports by CB Insight, Wall Street Journal, and other publications. We also used our judgment to see patterns in investing behaviors. One example is the Apple investments that seem to benefit it as a company.
Sources
Sources

From Part 01
Quotes
  • "Tsai spent $3.5 billion to buy the Nets and Barclays Center – the arena sale did not require league approval – from Mikhail Prokhorov. The Alibaba co-founder called it “an honor,” and praised the job GM Sean Marks and Kenny Atkinson did in building an also-ran into a playoff team."
From Part 03
Quotes
  • "Harvard Magazine and The Harvard Crimson report that the fund’s total value during the 2019 fiscal year is $40.9 billion — a $1.7 billion increase from the previous year."
Quotes
  • "Modern portfolio theory is at the heart of the investment philosophies of the Harvard University and Yale University endowments, and is the foundation upon which their portfolios are constructed."
Quotes
  • "And, for the most part, there isn’t as much overlap as one may expect. CapitalG and GV only share two portfolio companies. GV invested in the seed round of Gusto, the payroll and HR software platform, and both GV and CapitalG invested in Gusto’s Series B round. "
Quotes
  • " Our strategy is simple yet effective: we identify where we can add value, and then engage the right advisors to support each portfolio company. This unique approach includes mentorship programs, thought leadership events, and tailored, one-to-one, problem-solving sessions with Google experts to help solve key business and operational challenges."
From Part 04
Quotes
  • "Of course, the parent company in question is none other than Apple, whose publicly reported cash horde at June 30, 2012 was a whopping $117,221,000,000. This is the AUM of Braeburn."