Steve Davidoff reports that:
The California teachers’ pension fund has joined forces with the investment firm Relational Investors to campaign for the breakup of the Timken Company into steel and bearing businesses.
This is, of course, the same CalSTRS of which it was said in 2012 that:
The folks running CalSTRS projected a 7.75% return on equity. Then they changed it to 7.5%. In fact it was 1.8%. And no one was fired.
Any yet these are the same idiots that people like Lucian Bebchuk want to empower to run corporate America.
My bottom line is that there is no reason to think portfolio managers will make good business decisions and that goes double for people who aren't even competent portfolio managers.
