2 Andrew Ross Sorkin, “A Quiet Giant of Investing Weighs In on Trump,” New York Times, February 6, 2017.
3 Search conducted on Amazon website, July 15, 2019.
4 Stephen Taub, “The Value of Seth Klarman,” Institutional Investor, June 1, 2010.
5 Evan Osnos, “The Investor Seth Klarman, in a Rare Interview, Offers a Warning. Davos Should Listen,” New Yorker, January 22, 2019.
6 “Klarman Hall Opens with Fanfare and Substance,” Harvard Business School, accessed May 15, 2019.
7 “Klarman Hall Opens with Fanfare and Substance.”
8 Seth Klarman, “Hard Choices,” Harvard Business School, December 1, 2018.
10 Milton Friedman, “The Social Responsibility of Business is to Increase its Profits,” New York Times Magazine, September 13, 1970.
12 Lynn A. Stout, “On the Rise of Shareholder Primacy, Signs of Its Fall, and the Return of Managerialism (in the Closet),” Cornell Law Faculty Publications, Winter 2013.
15 “American Investment in the 21st Century,” Project for Strong Labor Markets and National Development, U.S. Senate, May 2019, 23.
16 MBA Recruiting: Data & Statistics,” Harvard Business School, accessed May 15, 2019.
17 “American Investment in the 21st Century,” 23.
18 “American Investment in the 21st Century,” 21.
19 GINI Index, World Bank.
20 Board of Governors of the Federal Reserve System, “Report on the Economic Well-Being of U.S. Households in 2017,” May 2018, 2.
21 Daniel Fisher, “Study Demolishes Private Equity’s Claim of Beating the Market,” Forbes, August 7, 2016.
22 Julius Krein, “Share Buybacks and the Contradictions of Shareholder Capitalism,” American Affairs, December 13, 2018.
25 Calculations performed by the author. Population and GDP data taken from Federal Reserve Economic Data (FRED).
26 Charles Murray, Coming Apart (New York: Crown, 2012), 69–103.
27 Murray, 240–56.
28 It was not lost on observers that Fortune’s editors appropriated the moniker given to West Point’s Class of 1915. Widely known as “The Class the Stars Fell Upon,” that cohort contained Eisenhower, Bradley, and fifty-seven other future generals. The connection was natural as HBS’s 49ers also had a strong connection to military service, as described by author Laurence Shames in a book about the class:
78 percent of the class attended with the help of GI benefits, and many of those would never have seen the inside of Harvard had the Japanese not attacked Pearl Harbor. They were sons of salesmen and farmers and bookkeepers. They came from inner-city public schools and second-tier Midwestern land-grant colleges, and they’d grown up in households where maiden aunts and union-member uncles still spoke Polish or Yiddish or Italian or Greek. They’d been outsiders before the war, but now, having put in their time and let themselves be shot at like everybody else, they were not to be denied a share in the rewards. They had no family firms to slide into, no preestablished networks of mentors to usher them along. What they did have, though, was the opportunity to try to make it on their own, and, in the name of that unprecedented chance, they brought to the Business School an almost hysterical intensity of effort that the blithe prewar preppies would have found eccentric, unbecoming, and terrifying.
29 Laurence Shames, The Big Time: Harvard Business School’s Most Successful Class and How It Shaped America (iUniverse, 2002), 3.
30 Geoffrey Jones, “Capitalism, Entrepreneurship and Responsibility,” Harvard Business School Publishing, November 22, 2017.
31 Stephen Taub, “Several Prominent Hedge Funds Took Big Stakes in PG&E Last Quarter,” Institutional Investor, November 16, 2018.
32 “Learn about the PG&E Natural Gas System,” Pacific Gas & Electric, accessed July 13, 2019.
33 Juliet Chung and Nicole Friedman, “PG&E Was a Hedge Fund Darling. That Bet Flopped,” Wall Street Journal, January 14, 2019.
35 Robert Digitale, Julie Johnson, and J. D. Morris, “Cal Fire: PG&E Equipment Caused 12 Northern California Fires During October Firestorm,” Santa Rosa Press Democrat, June 8, 2018.
36 Digitale et al.
37 Peter Eavis and Ivan Penn, “California Says PG&E Power Lines Caused Camp Fire That Killed 85,” New York Times, May 15, 2019.
38 Eavis and Penn.
39 Calculations performed by the author.
40 Katherine Doherty, Allison McNeely, and Miles Weiss, “Hedge Fund Holds $1B in PG&E Insurance Claims,” Claims Journal, January 15, 2019.
41 Doherty et al.
42 Michelle Celarier, “How Hedge Funds Hurt Puerto Rico,” Institutional Investor, November 30, 2017.
43 Michelle Celarier, “How Hedge Funds Hide,” Institutional Investor, April 17, 2018.
45 Celarier, “How Hedge Funds Hide.”
46 Jon Shazar, “Baupost Year-End Letter Cliffs Notes: Klarman Channels Dalio, Interior Decorating, Hot Nerd Burns,” Dealbreaker, February 10, 2017.
49 Inan Dogan, “Klarman Is the Latest Billionaire Money Manager with a Hot Stock-Picking Hand Gone Cold,” MarketWatch, January 30, 2019.
51 Peter Lattman, “What Spitzer Could Learn from Boesky,” New York Times, October 20, 2010.
52 Katherine M. Gehl and Michael E. Porter, “Why Competition in the Politics Industry is Failing America,” Harvard Business School, September 2017.