As McKinsey Sells Advice, Its Hedge Fund May Have a Stake in the Outcome
Seems highly unlikely that there’s any actual secretive insider trading happening here. It would be a HUGE risk for practically no gain, distributed across many individuals, committed by primarily people who wouldn’t stand to benefit. The firm should probably switch to vanguard or whatever... but the existence of this hedge fund does not mean the firm is using its insider knowledge maliciously. Most consultants won’t even know what other people on their team is working on, and most are in and out after 2 years.<p>The article buried the mitigating factor in the middle of the article. Hedge fund managers don’t coordinate with consultants, and 90% of MIO’s capital is managed by outside funds, including this one the article is about.<p>The problem mckinsey faces is that they consult for everyone.