CHAPTER 7Hedge Funds versus Universal Investors
To most people, corporations are abstractions. As one old English case famously put it, corporations have “no soul to damn and no body to kick.” By contrast, shareholders seem concrete. When we imagine shareholders, we picture parents saving for a child’s college tuition; retirees waiting for dividend checks; or, sometimes, a wealthy hedge fund baron driving his Ferrari up a long driveway between manicured lawns to the door of his Connecticut mansion.
Corporations Are Real, Shareholders Are Fictions
This view gets it backwards. Corporations may be invisible, but they are quite real. Corporations own real property, enter real contracts, and pay real damages for committing real torts. They can live ...
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