From Fragmentation to Function: Critical Concepts and Writings on Social Capital Markets' Structure, Operation, and Innovation

We hope to see a future in which more funds flow to investments seeking the generation of social and/or environmental value in conjunction with some level of financial performance. As the 'capital markets' moniker would suggest, we would like to see these capital flows be performance-based (so that funds advance the work of high-performance investees, while being less accessible to lower-performing and/or riskier ventures). Furthermore, we would like to see these investments adopt structures that more completely address the diverse needs and interests of investors and investees. Our ambition is that by better organizing the ideas and initiatives of the many individuals who have worked to frame this emerging market, these goals may be advanced. The paper's secondary goals are to help focus future research and praxis on efforts that build on the significant body of existing work without unduly re-treading well-worn analytical paths. This paper seeks to promote an elevated discussion of the social capital markets, a discourse focusing on  high-leverage issues. The paper also invites experts from related academic and practical fields to engage in a conversation that has to this point largely been conducted between social sector professionals turning their attention to capital flows and finance professionals placing their expertise in the service of social purposes

Blended Value Investing: Innovations in Real Estate

In March 2006, The World Economic Forum published Blended Value Investing: Capital Opportunities for Social and Environmental Impact. That paper, written by Jed Emerson and Joshua Spitzer, presented and explored the notion that between market-rate financial investments and philanthropy lie investment opportunities that intentionally create both financial returns and environmental and social value. These investment instruments seek not simply to balance extra-financial value with financial value, to avoid doing harm, or to add token social responsibility to financial investing (as is true of many 'double bottom line' funds); rather they pursue a sustained blending of value creation -- in financial, environmental and other dimensions. That paper presented 12 case studies of funds and investment instruments in this blended value investing category with a focus on global economic and social value creation more than environmental value creation.In the autumn of 2006, The William and Flora Hewlett Foundation funded a new exploration of blended value, this time focused more specifically on the area of environmental and conservation finance. Many innovations are advancing the field of environmental finance, many of these strategies have been well documented in a variety of articles, books and websites. Nevertheless, for many asset owners and managers, creating blended financial and environmental returns still remains a difficult goal to attain. These actors continue to ask questions regarding the types of investment option before them, the degree (if any) to which they carry a financial penalty, and the nature of the environmental value created (among other questions). Accordingly, this paper offers a broad overview of various real estate-based investment instruments and funds that are structured to generate financial returns while simultaneously advancing environmental value. The specific audience for this paper includes foundation executives seeking to move beyond traditional grantmaking, as well as high-net-worth individuals and other asset trustees working to understand options for pursuing full, blended value investments -- namely, those that create a defined level of economic value combined with environmental impact.This inquiry introduces frameworks for approaching blended value investments, and it raises a series of questions potential investors will probably ask. While the authors believe these investments will ultimately prove viable and efficient, this inquiry stops short of comparing these blended value investments to more traditional alternatives. In the absence of further data, the authors cannot assert that these investments are superior to traditional strategies. The inquiry's conclusion suggests future studies that might bring more data to the ongoing discussion

Blended Value Investing: Integrating Environmental Risk and Opportunities into Securities Valuation

Increasingly, investors are integrating environmental risk and opportunity into their financial valuations of public and private assets. This paper offers an overview of how environmental factors might be integrated into companies' financial valuation. More speculatively, it suggests ways in which a blended value investor could potentially attain equal or better financial returns than traditional investors agnostic to the environmental implications of their investments

Blended Value Investing: Capital Opportunities for Social and Environmental Impact

This paper is offered not as a fully comprehensive survey of the emerging area of blended value investing, but rather as a set of examples of how such investing practices are being developed and applied around the world. The paper's intent is not to provide a single answer for all investment challenges, but to demonstrate how groups of investors are mobilizing capital on new terms to meet the challenges of emerging investment opportunities, as well as the demands of investors seeking out new asset classes in which to place their capital.This paper presents innovations in capital finance that promise to bridge market-rate interests with strategic opportunities to create blended value that benefits shareholder and stakeholder alike. The following examples speak to an evolving capital convergence wherein mainstream capital markets and investing will increasingly become drivers of new solutions to historic problems. Blended value investing funds and instruments offer financing strategies a set of tools that go beyond traditional philanthropy or market rate investing and which complement the vision we all share of a world with greater equity and opportunity for its members.This paper also identifies several areas of research that would help advance the field of blended value investing. Finally, the paper concludes with words of caution that suggest a prudent approach to developing blended value capital markets. It offers a critique of the state of the markets, presents a strategic vision for the blended value capital markets, and suggests specific steps that participants might take in moving toward the ideal

From Fragmentation to Function: Critical Concepts and Writing on Social Capital Markets' Structure, Operation and Innovation

Social capital markets’ has become a popular phrase over recent years (Hardigan, 2006). While this paper will not definitively document the increase in its use, a simple web search of the phrase shows many and diverse discussions, initiatives, and writings addressing the topic. For the most part, these explorations appear to be coming in fits and starts that have had little traction as a common set of concepts, in part because of limited attempts to link new thought and practice with previous work on which the ongoing discussion could build. Among many, this condition has created a sense not simply of déjà vu, but of futility: if we continually begin our discussions and framing efforts anew, we overlook possible improvements and innovations that may be waiting just outside our door

Blended Value Investing: Innovations in Real Estate

In March 2006, The World Economic Forum published Blended Value Investing: Capital Opportunities for Social and Environmental Impact. That paper, written by Jed Emerson and Joshua Spitzer, presented and explored the notion that between market-rate financial investments and philanthropy lie investment opportunities that intentionally create both financial returns and environmental and social value. These investment instruments seek not simply to balance extra-financial value with financial value, to avoid doing harm, or to add token social responsibility to financial investing (as is true of many ‘double bottom line’ funds); rather they pursue a sustained blending of value creation – in financial, environmental and other dimensions. That paper presented 12 case studies of funds and investment instruments in this blended value investing category with a focus on global economic and social value creation more than environmental value creation. In the autumn of 2006, The William and Flora Hewlett Foundation funded a new exploration of blended value, this time focused more specifically on the area of environmental and conservation finance. Many innovations are advancing the field of environmental finance, many of these strategies have been well documented in a variety of articles, books and websites. Nevertheless, for many asset owners and managers, creating blended financial and environmental returns still remains a difficult goal to attain. These actors continue to ask questions regarding the types of investment option before them, the degree (if any) to which they carry a financial penalty, and the nature of the environmental value created (among other questions). Accordingly, this paper offers a broad overview of various real estate-based investment instruments and funds that are structured to generate financial returns while simultaneously advancing environmental value. The specific audience for this paper includes foundation executives seeking to move beyond traditional grantmaking, as well as high-net-worth individuals and other asset trustees working to understand options for pursuing full, blended value investments – namely, those that create a defined level of economic value combined with environmental impact. This inquiry introduces frameworks for approaching blended value investments, and it raises a series of questions potential investors will probably ask. While the authors believe these investments will ultimately prove viable and efficient, this inquiry stops short of comparing these blended value investments to more traditional alternatives. In the absence of further data, the authors cannot assert that these investments are superior to traditional strategies. The inquiry’s conclusion suggests future studies that might bring more data to the ongoing discussion

On the Perception of Difficulty: Differences between Humans and AI

With the increased adoption of artificial intelligence (AI) in industry and society, effective human-AI interaction systems are becoming increasingly important. A central challenge in the interaction of humans with AI is the estimation of difficulty for human and AI agents for single task instances.These estimations are crucial to evaluate each agent's capabilities and, thus, required to facilitate effective collaboration. So far, research in the field of human-AI interaction estimates the perceived difficulty of humans and AI independently from each other. However, the effective interaction of human and AI agents depends on metrics that accurately reflect each agent's perceived difficulty in achieving valuable outcomes. Research to date has not yet adequately examined the differences in the perceived difficulty of humans and AI. Thus, this work reviews recent research on the perceived difficulty in human-AI interaction and contributing factors to consistently compare each agent's perceived difficulty, e.g., creating the same prerequisites. Furthermore, we present an experimental design to thoroughly examine the perceived difficulty of both agents and contribute to a better understanding of the design of such systems

On the Perception of Difficulty: Differences between Humans and AI

With the increased adoption of artificial intelligence (AI) in industry and society, effective human-AI interaction systems are becoming increasingly important. A central challenge in the interaction of humans with AI is the estimation of difficulty for human and AI agents for single task instances. These estimations are crucial to evaluate each agent\u27s capabilities and, thus, required to facilitate effective collaboration. So far, research in the field of human-AI interaction estimates the perceived difficulty of humans and AI independently from each other. However, the effective interaction of human and AI agents depends on metrics that accurately reflect each agent\u27s perceived difficulty in achieving valuable outcomes. Research to date has not yet adequately examined the differences in the perceived difficulty of humans and AI. Thus, this work reviews recent research on the perceived difficulty in human-AI interaction and contributing factors to consistently compare each agent\u27s perceived difficulty, e.g., creating the same prerequisites. Furthermore, we present an experimental design to thoroughly examine the perceived difficulty of both agents and contribute to a better understanding of the design of such systems

The line of sight velocity distributions of simulated merger remnants

We use Gauss-Hermite functions to study the line of sight velocity distributions in simulated merger remnants. Our sample contains sixteen remnants; eight produced by mergers between disk galaxies of equal mass and eight produced by mergers between disk galaxies with mass ratios of 3:1. The equal-mass mergers display a wide range of kinematic features, including counterrotation at large radii, orthogonally rotating cores, and misaligned rotational axes. Most of the unequal-mass remnants exhibit fairly regular disk-like kinematics, although two have kinematics more typical of the equal-mass remnants. Our results may be compared to observations of early type objects, including ellipticals with misaligned kinematic axes, counterrotating systems, and S0 galaxies.Comment: 11 pages, 14 figures; LaTeX source + postscript figures. Accepted for publication in MNRAS on February 23, 2000. For a version with high-resolution figures, formatted for 8.5x11 paper, see http://www.ifa.hawaii.edu/faculty/barnes/lsvdsmr.htm

Shock-induced star formation in a model of the Mice

Star formation plays an important role in the fate of interacting galaxies. To date, most galactic simulations including star formation have used a density-dependent star formation rule designed to approximate a Schmidt law. Here, I present a new star formation rule which is governed by the local rate of energy dissipation in shocks. The new and old rules are compared using self-consistent simulations of NGC 4676; shock-induced star formation provides a better match to the observations of this system.Comment: Submitted to MNRAS. 12 pages, 5 B&W figures, 2 color figures. See http://www.ifa.hawaii.edu/~barnes/sisfmm.html for a version with high-resolution figures, and http://www.ifa.hawaii.edu/~barnes/research/interaction_models/mice/index.html for animations of the simulation