Stop the destruction of shareholder and stakeholder value!

In 2019, it was reported that more than one third of the $8 trillion in invested capital in the S&P 1500 was being managed in ways that did not cover the cost of capital.

California Public Employees’ Retirement System (CalPERS) unloaded a record $6 billion of private equity at a roughly 10% discount to their value in September 2021. The $440 billion public pension fund, the largest in the US, has cycled through four investment chiefs since 2009 and has long wrestled with the complexity of its $50 billion in private equity holdings.

CalPERS, like many public pension funds, doesn’t have sufficient assets to meet future promises to its state worker plan participants. If the funds can’t meet their return benchmarks, the onus is on taxpayers to help fill the shortfall.

June was the busiest month for large corporate bankruptcies since March 2021, according to data compiled by Bloomberg. Those that succumbed -- 13 in total -- ranged from a nearly century-old beauty company to an ex-SPAC that went public less than a year ago.

Would you agree that the essence of the role of the chief investment officer, chief executive and board of directors is to invest through sustainable means to create superior levels of sustainable value for shareholders and stakeholders compared to the value created by alternative investments of comparable risk?

Retailers such as Walmart, Target and Kohls misjudged the economy reopening and were not prepared for the spring season including Easter. The miscalculations left the retailers with bloated inventories which, when marked down at severe discounts, further eroded shareholder value in the first half of 2022 to the tune of 15%, 38%, and 25% respectively.

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