Increased Use of AI in Private Equity Will Cause an Industry Shakeout
A new study developed by Thomas Åstebro, Professor of Entrepreneurship at HEC Paris, finds that the number of private equity (PE) and venture capital (VC) firms using artificial intelligence has increased dramatically in the past decade. The study claims that while increasing efficiency overall, AI will also change deal-making processes and destroy junior-level jobs. This article summarizes the article, ‘An Inside Peek at AI Use in Private Equity’, published in the Journal of Financial Data Science (Summer 2021, jfds.2021.1.067) with Portfolio Management Research (PMR).
“The World is Watching El Salvador’s Bitcoin Experiment”
On September 7, El Salvador became the world’s first nation to make the cryptocurrency bitcoin legal tender across the country. This bold initiative from the tiny Central American state is dissected by HEC Paris Professor in Finance Bruno Biais, who has written several top research papers on cryptocurrency.
Should You Listen to the Wall Street Gurus?
During the Covid-19 pandemic, many households started to invest in the stock market expecting to pick the winning stocks and to take advantage of the high volatility. This phenomenon has been possible thanks to the development of trading applications such as Robinhood, which provides individual investors with the opportunity to buy and sell stocks easily. Because most individual investors do not have sufficient time and financial skills, they need to find relevant information to pick stocks. While some of them use social networks such as Twitter, Stocktwits or the WallStreetBets discussions on Reddit, other investors rely on the Wall Street gurus. Is that really a good idea to listen to them?
Jean-Noël Barrot: Building Bridges between Research and Politics
Jean-Noël Barrot is an associate professor at HEC Paris and member of parliament for Yvelines in France’s National Assembly, combining his political work with his research in finance. On June 29, he submitted a report to the government in which he detailed proposals to help France recover from the COVID-19 pandemic. In this interview, Jean-Noël Barrot explains how he manages to combine his research and his role in parliament in an effective way.
Why Do We Share Our Personal Data? The Privacy Paradox Explained
The business model of many tech companies is based on collecting and using data about their customers. Google and Facebook generate revenues by selling targeted ads tailored to users' personal information. Amazon shows you the product they forecast you will buy. Tesla collects data on drivers' behavior and is said to plan using these data to enter into the insurance business. Google has just acquired smartwatch producer Fitbit, which collects data about users' health. The list goes on and on. So why most of us still widely share our personal data, even when we claim to be worried by the lack of online privacy?
Will NFTs Disrupt The Art Market?
Why do non-fungible tokens (NFTs) have the potential to disrupt the art market? This new investment phenomenon came to light when an animated GIF of Nyan Cat, which is a meme of a flying pop-tart cat, sold for more than $500,000 US Dollars. Shortly after, musician Grimes sold her digital art for more than $6 million US Dollars. HEC Paris Associate Professor of finance Christophe Spaenjers explains how NFTs work and why they have become such big news for the investment world.
GameStop: Hedge Funds vs Amateur Traders?
Is the GameStop Affair a collective action revolting against major hedge funds, or is it just another form of speculation by amateur investors also aiming to become rich? In the course of one week, GameStop’s stock value had catapulted to an impressive 1600% rise from its previous value. This situation had Wall Street trembling, and had hedge funds and individual investors at attention. As GameStop’s stock value continues to fluctuate towards a lower price, its initial steep climb up raises questions on stock market behavior, the actions of hedge fund investors, and the trading technique of short selling. HEC Paris professor of Finance Johan Hombert explains the mechanics behind the GameStop affair and Robinhood trading application.
Midas Case Study: How to Enter the Brazilian Automotive Aftermarket?
Denis Gromb, Antin I.P. Chair Professor of Finance at HEC Paris, and HEC Paris EMBA graduate François Sauvageot present their business case study “Midas in Brazil”. Midas is a global chain of auto repair and maintenance centers, and the case connects several key themes such as franchising, the automotive aftermarket, valuation and joint ventures in a country renowned for its challenging business environment.
Nobel Prize in Economics: What Impact on Research and Society?
The 2020 Nobel Prize in Economics recognized Paul Milgrom and Robert Wilson of Stanford University for their research on auctions. In this interview, Jean-Edouard Colliard, Associate Professor of Finance at HEC Paris and author of "Les Prix Nobel d’Economie", explains their research, and its role in the economy, society, and the perception of economists.