Thursday, March 29, 2012

Clayton Christensen’s investments

Today, I went to listen to Clayton Christensen’s talk on Growth -- part of special "Power of 10" PARC Forum series featuring 10 speakers on 10 aspects of innovation. He charmed the audience with his self-deprecating sense of humor.


Besides teaching at Harvard, he writes the books. The 2011 "Innovator's Dilemma" received the Global Business Book Award. Importantly, Clayton co-founded four successful companies: CPS Technologies, a materials science firm; Innosight, a management consulting firm; Rose Park Advisors, an investment management company; and The Innosight Institute, which extends his research on health care and education.

Somewhere in the beginning of his talk, Clayton mentioned the astronomical returns brought by disruptive companies in 10 years. I found a few companies in which Clayton's hedge fund Rose Park Advisors invested, according to his interview in December 2011.
athenahealth (NAS: ATHN)
Provides medical software to doctors' offices. The company is becoming a one-stop shop for all of the e-needs of doctors, especially when it comes to insurance filings.

Cree (NAS: CREE)
Manufactures LEDs. 
LEDs last longer and use less energy than traditional light bulbs.
New Oriental Education (NYS: EDU)
Online education in China.
New Oriental is changing the education paradigm in the world's largest nation.


NxStage Medical (NAS: NXTM)
Makes portable dialysis machines.
Dialysis patients don't need to go to the hospital for treatment, which is both more convenient and -- usually -- more sanitary.
salesforce.com (NYS: CRM)
Cloud-based software solutions for businesses
Instead of buying expensive software and paying for installation, companies can simply use the programs available on Salesforce's servers.

I don't know when the hedge fund led by hid son Matthew added those companies to the portfolio, or, perhaps, sold already. The returns on all of them for the past 3-5 years is much higher than S&P 500 returns. Whether those companies are the lucky ones among many more unlucky ones, I don't know either.

3 comments:

  1. Asset Protection and an Asset Protection plan are things that we all as individuals need. Very good information on this site here: asset protection

    ReplyDelete
  2. It is one of the dreaded things in business, when assets depreciates.
    llc

    ReplyDelete
  3. Kaufman's Adaptive Moving Average (KAMA) Usage and Signals
    Chartists can use KAMA like any other trend following indicator, such as a moving average. Chartists can look for price crosses, directional changes, and filtered forex trading signals .
    First, a cross above or below KAMA indicates directional changes in prices. As with any moving average, a simple crossover system will generate lots of forex trading signals and lots of whipsaws. Chartists can reduce whipsaws by applying a price or time filter to the crossovers. One might require price to hold the cross for a set number of days or require the cross to exceed KAMA by a set percentage.

    Second, chartists can use the direction of KAMA to define the overall trend for a security. This may require a parameter adjustment to smooth the indicator further. Chartists can change the middle parameter, which is the fastest EMA constant, to smooth KAMA and look for directional changes. The trend is down as long as KAMA is falling and forging lower lows. The trend is up as long as KAMA is rising and forging higher highs. The Kroger example below shows KAMA(10,5,30) with a steep uptrend from December to March and a less-steep uptrend from May to August.

    And finally, chartists can combine signals and techniques. Chartists can use a longer-term KAMA to define the bigger trend and a shorter-term KAMA for forex trading signals . For example, KAMA (10,5,30) could be used as a trend filter and be deemed bullish when rising. Once bullish, chartists could then look for bullish crosses when price moves above KAMA (10,2,30). The example below shows MMM with a rising long-term KAMA and bullish crosses in December, January, and February. Long-term KAMA turned down in April and there were bearish crosses in May, June, and July.

    free forex signals is Opportunity Trading alerts to trade on a currency pair or gold at Exact entry point , take profit and stop loss levels
    forex signals send via email,SMS and on website https://www.freeforex-signals.com/

    ReplyDelete